This is just my opinion but BTC has bounced from a very critical diagonal line that goes back to the previous ATH in April 2021. This line is being respected atm and may take another swing low before we come back through to the upside.
It's pretty clear that the bears this time around are a lot weaker than they were in the May - July consolidation but of course that can always change with new catalysts such as SEC regulatory announcements or anything new from J Powell. I do have a feeling that there will at least be one more dip down before we move higher... it's just my opinion though and you should DYOR.
But from a holistic stance, it would make sense that market makers will take BTC down one more time to 36K-40k region to flush over-leveraged longs and to trap bears into believing that H&S is playing out since the big money institutions need liquidity to buy. In order to get the liquidity they NEED many shorts in the market otherwise BTC would fly to unsustainable heights... again, just my view, may not turn out this way.
I totally agree with this. I, too, look for a final liquidation of longs to 35K-37K and it will set a great bear trap for those shorts that are seeing 25K-29K. I look for the next wave to take off from 35K-37K. Great analysis
peterbhc
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I have the same conclusion - Whales want more FOMO shorts to enter in preparation for a massive short squeeze candle to send BTC bullish
ich1baN
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@peterbhc, and everyone keeps talking about leverage too so seems like a good time for one last flush. Do you have a good chart on current long leverage?