Time for a short squeeze?
Since I don’t hold a crystal ball to tell what market is going to do next hour, next day or 6 months from now and charts are also not be all & end all or doesn’t rely on holy grail of any indicator so not going to time the market, but looking at the available data and market psychology, a educated move can be guessed. In my opinion, which can be wrong as well, but since open interest is at peak & there’s lot less longs then short positions… market moves because of two reasons liquidity and market imbalance, since liquidity is above the current trading price till 67k and also below till 52k and the market imbalance is at 56.5k level. Market has taken almost all the longs and so far a fraction of shorts are gone.. there are currently few millions on longs while few Billions on the shorts, so as the market psychology is, it always moves in the opposite direction of what masses predict. In my opinion we should see a short squeeze to take out late to medium shorts and grab liquidity and trap traders on higher price before moving down again to take out the longs as retail bias changes with one to two red or green candles. We have seen a lot of blood bath and downward movement and no sizable volume, market makers will seize this opportunity to do exactly opposite and since this is a classic play in a choppy market so it will cut on both sides.. so most likely a short squeeze is coming in few hours to take out the shorters as the FUD about drop is getting louder and louder so it’s time to put silence to lambs !! Stay cautious, stay safe and avoid leverage as whatever has been discussed above is just a probability and not a certainty and should not be taken as financial advice. Short squeeze should not be ruled out but who knows when it will come followed by a large sell off to trap the bulls and then kill the bears on way… that’s how choppy market works and looking at the data most of the market is in oversold positions with RSI down below 50…
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