⭐ Merited by Majormax (1)
Bears don't look impressive yet, but it's possible we're slowly forming a multi-day top similar to August 2019 or February 2020.
Sentiment has turned strongly bullish with all the halving hype. Bitfinex longs outnumber shorts 4.66 to 1 now. Bitmex swaps are consistently holding above spot, the Fear & Greed index is showing "greed." I'm afraid to even predict a bearish outcome because going down feels impossible (a top indicator in and of itself).
I'm a big believer in maximum pain theory, and with sentiment this bullish, it's beginning to feel like the direction of maximum pain is down, not up.
I've closed my longs. Time to let the bulls and bears fight over $10K, and $10.5K. I want to be ready for a shakeout like June 2016, July 2017, September 2017, May 2019, etc. especially after 8 green weekly candles.
Sentiment has turned strongly bullish with all the halving hype. Bitfinex longs outnumber shorts 4.66 to 1 now. Bitmex swaps are consistently holding above spot, the Fear & Greed index is showing "greed." I'm afraid to even predict a bearish outcome because going down feels impossible (a top indicator in and of itself).
I'm a big believer in maximum pain theory, and with sentiment this bullish, it's beginning to feel like the direction of maximum pain is down, not up.
I've closed my longs. Time to let the bulls and bears fight over $10K, and $10.5K. I want to be ready for a shakeout like June 2016, July 2017, September 2017, May 2019, etc. especially after 8 green weekly candles.
There you have it, a classic BTC shakeout:
And that ladies and gentlemen, is why you don't stay leveraged long at key resistance levels after extended gains. We just saw some epic liquidations!
Now let's see if this quickly retraces and if bears start piling on shorts. Either (or both) will give us some indication of where sentiment is at, and whether we can expect more carnage.