Bitcoin Price Today: For the past two weeks, Bitcoin has remained relatively stable. However, that did not dissuade speculators from opening a record-breaking amount of margin short positions via Bitfinex. All in hopes that the newly found price support will not hold while BTC continues its plunge.
Do they know something you don’t? Let’s take a look.
- Day’s Range: 6,230.0 – 6,526.2
- Volume: 41,395 BTC
- Significant Candlestick Patterns: Morning Doji Star Reversal (5hr Chart)
Weekly Chart Overview
After falling to $5886 Bitcoin managed to close last week strong at $6491 while also forming a bullish hammer reversal pattern. The high of this candle remains a strong area of interest for the bulls moving forward.
- Bullish – A break above $6623 (last weeks high) will trigger a massive amount of SL orders in effect squeezing the short sellers while propelling the price back towards the $8000 area.
- Bullish – While currently flat, the weekly MACD remains primed for an upwards cross.
- Neutral – The weekly RSI remains neutral at 44,44.
- Potential Swing Play: Entry < $6623, Profit Area: $8000, SL: $5800
Daily Chart Overview
The daily chart shows the clearest signals of support area accumulation.
- Bullish – The daily price action is proving $5k to be a clear demand area. We can see that by observing bearish rejection patterns. Bears are trying hard to move the price down, while the bulls respond by increasing accumulation (forming a final flag).
- Bullish – According to the MACD we’re on the verge of crossing upwards which would signal further confirmation of the upcoming uptrend.
- Bullish – While the price remains relatively flat the RSI remains to curl upward which proves that buyers are below and a momentum shift is in the works.
Bitcoin Price Today – 4-Hour Chart Overview
The 4-hour chart is probably the most misleading. While looking like the perfect “short” it’s no wonder short sellers are finding it so enticing. If it looks to good to be true it probably is.
At first glance, the pattern looks like a rising wedge (bearish). Actually, this pattern is defined as a “Final Flag”. It appears to be and begins as a continuation pattern but ends up as a trend reversal pattern. The components are – Trend. Pullback that is mostly horizontal.
Short Squeeze Inevitable?
Right now, it doesn’t seem like the market is ready to accept any price lower than $6000.
The main takeaways are: despite the exceedingly bearish view, the market has been experiencing an influx of bullish news which has seemingly taken a backseat to speculators short-term bearish bias.
With short positions at an all-time high, this is one short play you probably don’t want to be a part of.