Weekly trend in Bitcoin is about to confirm here, either going a tad higher or by this week's close. Daily is already trending up for a while, so the odds of this confirming are extremely high. We are already long from previous publications, but the continuation signals and pullback entries give us low risk chances to add or estimate where to trim exposure before corrections.
Coinbase is set to debut in the stock market today, and we had news of new institutional entrants recently, I think a big short squeeze is forming here. We had some huge volumes in the recent dip, only seen in CME charts when prices crashed on April 7th. There was also persistent selling at the 59-60k area for many weeks in a row since the top at 61k during March.
This persistent selling at practically the same price created a cluster of orders that were filled in the same area near the top of the range. This tells me the sellers kept hitting this area until they ran out of ammo, then tried pushing further on April 7th and lost the plot since. Buyers are now trapping them, they tried to corner the market and failed, and will get squeezed next.
Targets are where I think prices will land in the next few weeks, after which we might get another consolidation and correction, with downside volatility of 20-30% being highly likely after May 30th.
Cheers,
Ivan Labrie.