- Following unconfirmed claims by the NYC Attorney General regarding Bitfinex and Tether’s insolvency, the bitcoin market had a knee jerk reaction that caused us to retest macro support. However, this pullback barely made a scratch on the market structure as we didn’t manage to break our trend of higher lows.
- The move was swift, but after a few days of sideways consolidation, the market is now seeing a retest of macro resistance in the $5,300 level. So far, the market has yet to reclaim the broken support, but the move is still fresh
- If we manage to close above the $5,300 level, this would mark a very bullish feat for our market structure as we continue to test and reclaim support level after support level. If we can close a daily candle above the $5,300 level, it’s very likely we will see a continuation of the uptrend and test the $5,800s.
- At the moment, the short interest is very high and the market seems to be absorbing every bit of ammunition the bears throw at it. As time moves on, we are seeing a high amount of short positions stack up around the $5,300 zone. This sets up the market for a potentially violent short squeeze.
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This article originally appeared on Bitcoin Magazine.
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