The crypto market is mainly near-term Bitcoin bearish right now, but one technical analyst has warned that a short squeeze may be on the way.
According to at least one reasonably popular crypto-charting, technical analyst, @Roman_Trading, yes, as he believes a short squeeze might be on its way.
Mind you, he’s one of the few we’re seeing on our crypto Twitter-focused feed who isn’t short-term Bitcoin bearish right now.
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But the US crypto trader is pointing to weak volume on the recent breakdowns, indicating a lack of validation at this stage for strength in a push lower.
He also refutes that the Bitcoin chart is showing a “head and shoulders” pattern, which is a classic bullish-to-bearish trend reversal sign in the mystical, dark arts world of financial technical analysis.
You probably very well know this if you’re digging around in Stockhead, but a short squeeze, meanwhile, can occur when a sudden, sharp rise in an asset forces all the shorting traders to let out a collective, “Oh, sh-t!” and scramble to close out their bearish trading positions – shorts.
A frisson in buying pressure then squeezes the short-sellers out like a memecoin millionaire squeezing a zit. The price of the asset can consequently shoot up in response.
Investopedia has a good, more detailed and less graphic breakdown.
FYI, that is not a head and shoulders nor looks anything like an HS.
Volume also doesnât validate a breakdown if it was.
These are trading 101 ideas many are failing to recognize.
— Roman (@Roman_Trading) May 14, 2023
The “head and shoulders crowd”, as Aussie analyst @tedtalksmacro calls them, have been calling for Bitcoin breakdowns based on the apparent pattern aboutr which Roman is dubious – to levels around $US25k or $US24k or much further below, around $US20k.
However, for now, Bitcoin is hanging in there at or just below $US27k.
It does seem to be having a great deal of difficulty reclaiming the level as support for now, however.
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Top 10 overview
With the overall crypto market cap at $US1.18 trillion at noon Monday (AEST), up 1.6% since the same time Sunday, here’s the current state of play among top 10 tokens – according to CoinGecko.
In the small hours of Monday (AEST), Bitcoin (BTC) did briefly move above the $US27,000 mark that short-midterm-focused traders have been eyeing as important. But that didn’t last long, unfortunately.
As we write it has poked its head back up there, so here’s hoping …
For good measure, we’ll grab a hold of another popular chartist’s analysis as something of a counterbalance to Roman’s above.
With the weekly close on Bitcoin closing in, “Rekt Capital” needs BTC to make a strong and sudden spurt back up over $US27,500 for him to not join the heavily creaking bandwagon of BTC bears right now.
We shall see where the BTC price lands in a few hours, then.
Meanwhile, we’re sure hoping the notoriously incorrect CNBC financial analyst Jim Cramer is right for once.
Because blistering barnacles, thundering typhoons and twittering tarnations, we’re not so sure we’re happy we saw this…
Uppers and downers
Some of the biggest 24-hour gainers and losers at noon Monday (AEST). Stats based on CoinGecko.com data.
PUMPERS (11-100 market cap position)
- Conflux (CFX), (market cap: $US595 million) +13.9%
- Sui (SUI), (mc: $US623 million) +9.9%
- Toncoin (TON), (mc: $US2.97 billion) +8.4%
- Kava (KAVA), (mc: $US525 million) +7.8%
- Huobi (HT), (mc: $US484 million) +6.9%
PUMPERS (lower, lower caps)
- Milady Meme Coin (LADYS), (market cap: $US138 million) +64.4%
- ORDI (ORDI), (mc: $US313 million) +38%
- Bob Token (BOB), (mc: $US48 million) +35.8%
- Open Campus (EDU), (mc: $US193 million) +24%
- PlatON Network (LAT), (mc: $US44 million) +22.3%
Visit Stockhead, where ASX small caps are big deals
SLUMPERS (11-100 market cap position)
- Klaytn (KLAY), (market cap: $US542 million) -4.6%
- Pepe (PEPE), (mc: $US722 million) -4.5%
- Radix (XRD), (mc: $US738 million) -0.7%
- cETH (CETH), (mc: $US473 million) -0.3%
- Bitget Token (BGB), (mc: $US659 million) -0.3%
SLUMPERS (lower, lower caps)
- Ecoin (ECOIN), (market cap: $US97 million) – 18.9%
- MangoMan Intelligent (MMIT), (mc: $U74 million) -12.8%
- Dawn Protocol (DAWN), (mc: $US46 million) – 12.7%
- SafeMoon (SFM), (mc: $US84 million) – 11.8%
- ArbDoge AI (AIDOGE), (mc: $US59 million) -11.6%
Around the blocks
Some pertinence and randomness that stuck with us on our morning moves through the Crypto Twitterverse.
Hang on, here’s another reasonably prominent crypto analyst bucking the bearish hive mind…
Not a prediction, but there is solid chance of $40k #bitcoin by the end of June based on my TA/momentum work.
I am, obviously, long $btc, so I am biased.
(Not individual trading or investment advice. Iâm probably wrong.)
— Dr. Jeff Ross (@VailshireCap) May 14, 2023
I think we are in between Depression and Disbelief.
— ðCrypto ENTJ (@CryptoEntj) May 14, 2023
This content first appeared on stockhead.com.au
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