While it is clearly contrary to sentiment at the moment, as well as many TA indicators, it is logical to assume that we will not be setting new lows as long as all these short positions are open.
We are once again at the upper boundary of a falling wedge with volume on the rise since the 1st of December.
The two possible outcomes I see are:
1) Short term stability in price and a gradual reduction in the number of open short positions before a new drop to the $3000 level.
2) A short squeeze which could take the price as high as $4600 but more likely to $4330 followed by a new decline and eventual drop to $3000
We are once again at the upper boundary of a falling wedge with volume on the rise since the 1st of December.
The two possible outcomes I see are:
1) Short term stability in price and a gradual reduction in the number of open short positions before a new drop to the $3000 level.
2) A short squeeze which could take the price as high as $4600 but more likely to $4330 followed by a new decline and eventual drop to $3000
