Largest daily move since 7th December. Start of next bull run?
Large breakout move today from its narrowing range between 2 key median pitchfork lines (triangle formation) triggered a huge short squeeze (red line showing number of shorts on bitfinex). A short squeeze is when price runs through a key resistance level liquidating short positions. As these positions liquidate it drives price higher in turn liquidating more shorts in a ripple effect producing large moves in a very short time (Today we moved 16% in a 1 hour period). Initial resistance is right on this level around 8k, targeting higher towards 50DMA, then previous march high which will coincide with topside pitchfork line & 23.6% fib retrace of december-feb lows. First support around the 61.8% fib retrace of entire range, key lower support is where the median pitchfork lines intersect.
Note
Tentative break of 50% pitchfork line. 3 areas of resistance noted on chart (circles)Note
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.