$BTC Price bounced from our demand zone but retraced the entire move back down,



We are still seeing rejection from the zone,

But the internals are not aligning + Buyers are not showing up,

If you see the perp and spot CVDs, they have been rolling over for a day now,

Currently price is forming a descending wedge type structure with OI ticking up slowly while price declines.

Meaning new shorts are adding up on the failed bounce,

We had minor long liquidations and potentially get more longs flushed into the CPI,

In the previous post we talked about how price could sweep the range lows (58-60k) if this support fails.

And looking at how things are we might test 60k soon,

The thing to notice here is that OI is keep on rising, and shorts are entering,

If CVDs keep on rolling like this, we are certainly gonna test 60k again,

Though if CVDs start to reverse from here, that would lead to a stronger squeeze cuz of the new shorts entering.

What I am doing now?

I closed my Swing Long above BE and will be staying flat for sometime, will observe how things are playing out.

I am looking for better long entries, if I get them, will take them for sure.

We got liquidity building below 60k, which has very high chance of getting tested,

So imo, it's better to stay flat and observe how things goes from here and then take decisions based on that, I personally wouldn't wanna long into a bearish orderflow.

If this goes straight up from here, that's fine to me.
$BTC

Price bounced from our demand zone but retraced the entire move back down,

We are still seeing rejection from the zone,

But the internals are not aligning + Buyers are not showing up,

If you see the perp and spot CVDs, they have been rolling over for a day now,

Currently price is forming a descending wedge type structure with OI ticking up slowly while price declines.

Meaning new shorts are adding up on the failed bounce,

We had minor long liquidations and potentially get more longs flushed into the CPI,

In the previous post we talked about how price could sweep the range lows (58-60k) if this support fails.

And looking at how things are we might test 60k soon,

The thing to notice here is that OI is keep on rising, and shorts are entering,

If CVDs keep on rolling like this, we are certainly gonna test 60k again,

Though if CVDs start to reverse from here, that would lead to a stronger squeeze cuz of the new shorts entering.

What I am doing now?

I closed my Swing Long above BE and will be staying flat for sometime, will observe how things are playing out.

I am looking for better long entries, if I get them, will take them for sure.

We got liquidity building below 60k, which has very high chance of getting tested,

So imo, it's better to stay flat and observe how things goes from here and then take decisions based on that, I personally wouldn't wanna long into a bearish orderflow.

If this goes straight up from here, that's fine to me.
BTC-2.2%
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StardustUnderTheGlassDome
· 2h ago
If CVD suddenly turns around, this short squeeze will be quite exhilarating
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Half-UnderstoodZk
· 2h ago
When perp CVD and spot diverge, I usually choose to watch the show.
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Low-PolyEarth
· 2h ago
You closed the swing long position correctly; now the order flow is too messy.
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VintageKeychain
· 2h ago
That batch of stop-loss orders in the 58–60k range will get swept eventually; the real question is whether it can V-shaped recover after they’re cleared.
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LighthouseInTheMist
· 2h ago
CVD rollover + OI up = classic short trap recipe, waiting for a false breakdown
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MirrorBallReflection
· 2h ago
OI slowly climbs, prices gradually fall, I've seen this script too many times
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BluePeonyMinerDream
· 2h ago
CPI was so quiet earlier, it feels like a big fish is waiting for the data
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LiquidityLibrarian
· 3h ago
The end of a descending wedge is usually violent, but the direction is really hard to predict.
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GateUser-4bd1cc87
· 3h ago
The 60k liquidity pool is almost full; opening a long position here really requires some faith.
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