BitcoinLong
Short Squeeze on the Way?
If we take a minute to see how many people are going long and how many people are going short, we can see that shorts are at/above their ATH. Last time they were this high we seen some very violent movement and a swath of liquidations. I, for one, am not willing to get caught in a compromising position like that again and this is a good enough reason for me not to go short.
If we take a look at the RSI on the 12HR XBTUSD chart we can clearly see some bullish divergence at the end (or what looks like the end) of a relatively local downtrend. Bullish divergence is a reliable signal for reversals. Put this together with the fact that shorts are at an all time high and it looks like we have a reversal on our way.
Not only that, but we have a positive crossover with the 5 EMA (green line) moving above the 10 EMA (red line).
Last, but most certainly not least, we have God Complex plotting a buy arrow almost exactly 24 hours ago. The price hasn't drifted far from it as of yet and it could still be considered a decent position to enter from.
If you're trading leverage on BitMEX I suggest you use a conservative multiple (like 2x) as it wouldn't be unusual to see a small sneeze in the market before taking off.
Stay safe out there!
If we take a look at the RSI on the 12HR XBTUSD chart we can clearly see some bullish divergence at the end (or what looks like the end) of a relatively local downtrend. Bullish divergence is a reliable signal for reversals. Put this together with the fact that shorts are at an all time high and it looks like we have a reversal on our way.
Not only that, but we have a positive crossover with the 5 EMA (green line) moving above the 10 EMA (red line).
Last, but most certainly not least, we have God Complex plotting a buy arrow almost exactly 24 hours ago. The price hasn't drifted far from it as of yet and it could still be considered a decent position to enter from.
If you're trading leverage on BitMEX I suggest you use a conservative multiple (like 2x) as it wouldn't be unusual to see a small sneeze in the market before taking off.
Stay safe out there!
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