Topic: Bitcoin In Depth Analysis June 19 (Read 117 times)

Short squeeze into resistance this morning, giving bulls a new found sense of confidence.

Resistances & Supports. Same levels as yesterday
After breaking above the $6.4k resistance we now set our sights on the previous swing low around $7.2-6.9k. Above $7.2k we will look to break $7.7k and change the market structure in the mid term bullish.

Supports - Same levels as yesterday
The resistance at $6.4k now turns back into support, making this a zone we expect price to experience a bounce/reversal from if/when price retraces after this large move. Below $6.4k remains the large bullish zone from $6k-5.4k.

Ichimoku Cloud.
The 4H cloud is currently providing some resistance to price when looking at the cloud metrics. A break above the cloud and above $6.9k still remains the first objective.

Oscillators.
The weekly stoch is the most oversold it has been in over 3 years. This is not to be seen as a direct signal for a trade entry/exit but more a point of perspective on the current market environment, one in which the optimal selling opportunity is past due.

Margin Positions.
A look at the total BTC/USD short positions open on Bitfinex shines a light on the move earlier in the day as Bitcoin sprung up a few hundred dollars. This move was propelled likely by a string of short liquidations as the number of shorts dropped in unison with the price rise. Short squeezes are not the most sustainable of moves so a retrace back to retest the point of breakout is likely.


Conclusion
At the moment, although there was a strong move upwards, BTC is not out of the woods yet.

Short squeeze price action is less fueled by organic buying interest than it is over-leveraged margin traders.

Due to this we are looking for a confirmation of market structure before turning bullish, in which a break and hold above $6.9k on higher time frames would be a great start.


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