Channel Breakout and Backtest
Updated
Looks like we had a breakout of a decending channel with high volume indicating a possible reversal of this bear trend. It started to show some weakness with a backtest of the top of the channel likely due to overbought conditions on some of the oscillators. However, I think this reversal is likely to play out and play out BIG. Shorts are nearing their previous all time high and some very noticeable divergence is visible on the daily chart on multiple indicators. We may be due for a massive short squeeze.
Comment
Looks like the price is playing out as a double top. Volume fairly low. Bears may make one final attempt at the 6000-6150 support area where I would anticipate that they will be exhausted and further divergence will be seen. I still think a massive short squeeze in play.
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