Good morning, traders. Bitcoin price held up throughout the night but this morning has seen it drop right back into the support zone it was hovering above. As mentioned on yesterday's live stream, there are currently three possibilities for a bounce -- a push up from this support, a short squeeze, and a potential oversold daily. The latter, I believe, may require a short move up to the $7000-$7200 area and then a drop as support is removed to force the "spring." CBOE Bitcoin futures expire tomorrow, which could provide some downward pressure this morning. All this being as it is, I am returning to the pattern of movement that I was concentrating on up until about a week ago.
The 30 minute chart shows price being supported by the accumulation zone that it was previously hovering above, the same as was done at the beginning of April. This comparison gives us the current chart on the left and April's 30 minute chart on the right. While the cloud is currently large, we can see it starting to shrink in size later tonight. Just like in April, everyone is clamoring for price to fall and guaranteeing it will. This is luring unsuspecting amateur traders into maxing out leverage on their shorts to catch the fall and "become rich overnight." This move will feed the potential short squeeze.
The 30 minute chart shows price being supported by the accumulation zone that it was previously hovering above, the same as was done at the beginning of April. This comparison gives us the current chart on the left and April's 30 minute chart on the right. While the cloud is currently large, we can see it starting to shrink in size later tonight. Just like in April, everyone is clamoring for price to fall and guaranteeing it will. This is luring unsuspecting amateur traders into maxing out leverage on their shorts to catch the fall and "become rich overnight." This move will feed the potential short squeeze.
