Finally bitfinex long/short ratio is above 1 again so the short squeeze meme that literally every single person was talking about is dead. BTC -1.01% looks like it is going to chop around till the weekend ends. No trade to take as of now. It's facing significant resistance around 7100 to 7200, no reason to long before that breaks. Now the 6800 support breaking in my opinion will lead to a high probability short trade. We saw a lot of selling absorption from 6800 to 7k in the last few days. Meaning that there was a lot of buying above 6800 that will try to exit below. Many of the bids got pulled from 6800 after the bounce to 7k. Game plan: wait for the break of 6800 and wait for the bids on the book to get filled till 6700(important) and short the bounce as close to 6800 as you can as underwater longs from above 6800 are trying to exit their positions. Break of 7200 invalidates this idea. Trade is on bitmex and ignores every other exchanges price action/orderbook.
Comment:
While the break of 6800 took us straight to 6200, we passed 7200 and broke 6800 without a retrace. This idea was invalidated. No trade was taken.