In my prior update, I mentioned if bitcoin broke above $3,600, we could see a temporary bull run. At the time of writing this, the bulls continue to run. Bitcoin is currently trading around $4,000 on Coinbase.
Looking at the daily chart, we can see price has broken above the 21 day EMA. If the daily candle can close above this level, it’ll be a very healthy sign of strength.
Daily volume has risen fairly significantly to just above $8 Billion. We have not seen buy volume like this since May.
We can’t rule out a dead cat bounce and/or temporary short squeeze. Longs have dropped off the board by nearly 32%. Shorts remain fairly stable overall. This suggests market makers may be running a short squeeze to try and liquidate shorts before the down trend continues. However, this could spark an unintentional, more sustainable bull run if enough buyers believe the bottom is in and FOMO takes over.
In today’s video analysis I discuss, where price may go from here, traps to avoid and so much more. I hope you find it helpful.
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!
Disclaimer: I am NOT a financial advisor and this is NOT financial advice. Please always do your own research before investing.