Go to TradingView and search for the Bitcoin shorts chart. You can see that yesterday, new shorts went parabolic, but at the same time the price of Bitcoin continued to just tick up.

What does this mean?

• This can be seen as the shorts being absorbed by a buyer, essentially trapping them into short positions that must be closed by buying back higher. This is where short squeezes occur and momentum carries price higher again and again.
• It can also be seen as sentiment changing and if price starts to move lower, then momentum could kick in. The fact we're already in a bearish trend, certainly adds weight to this scenario.

Take a look at the Bitcoin daily chart:

The fact that price has held support without making a new lower low is highly significant. With price trying to swing back up to make the first higher high in a longgg time, this is crunch time for the bears and it seems pretty logical that they're coming in for a bit of a last stand as the bulls look to take back some control.

I like to try trade in the direction of the biggest possible repricing if it does occur and for me that's to the upside from here playing for a short squeeze. Price is just drifting back down as I type this, but if we do get a bit of a rally again tonight, I want to be on board when things get really interesting.

Best of probabilities to you.

---

@danewilliams | Steemit Blog

Market Analysis

Twitter: @danewilliamsau