1) Traders will take Short Positions on test of line around 9400, If they succeed with the supply line then $BTC will retrace back to test 8k level again to form Reversal Pattern as suggested earlier.
2) Short Squeeze: If Shorters failed by Bulls and try to cover their short positions by buying more and more BTC => resulting in Fake Breakout upto 11k
"A short squeeze is a rapid increase in the price of a stock that occurs when there is a lack of supply and an excess of demand for the stock. Short squeezes result when short sellers cover their positions on a stock, resulting in buying that drives the stock price up."
Remember: We are still in Downtrend below counter
BTC went with case 1)
- 8k level retraced back on test lower band of Resistance zone
- Forming Right Shoulder of Inverse H&S Reversal Pattern
What to Look for:
Break of Resistance zone upto 9400 =>
* If not, will result in invalidation of reversal pattern
* Breakthrough resistance zone will get it back to test R2 level around 10.8k
Technicals 4H chart:
MACD, RSI, Stochastic => all Bullish