With Bitcoin falling on increasing volume, the question is will there be any buying? It’s hard to imagine that long-term buyers would pay $5,200 if they didn’t pay $5,500. Meanwhile, all those who bought last week for a retest of $6,000 are now under pressure.
On the other hand, the short trade is probably overcrowded, and we are bound to see some rallies when shorts are squeezed. Crypto traders have become accustomed to playing short term bounces over the past few months, and those that do may be the only buyers around. However, they will only be in it for quick gains and when they take profits the buying will disappear.
Until resistance is broken selling rallies when momentum fades is probably better than trying to predict the eventual outcome.
On the other hand, the short trade is probably overcrowded, and we are bound to see some rallies when shorts are squeezed. Crypto traders have become accustomed to playing short term bounces over the past few months, and those that do may be the only buyers around. However, they will only be in it for quick gains and when they take profits the buying will disappear.
Until resistance is broken selling rallies when momentum fades is probably better than trying to predict the eventual outcome.