Bitcoin (BTC) Finally Climbs Past 38.2% Fibonacci Retracement From ATH

Bitcoin (BTC) has finally rallied well past the 38.2% Fibonacci retracement level from all-time high and there is now no confusion whether it has tested that level or not because we have a clear break out past the 0.382 on most exchanges. This is a highly significant development that makes this today probably the most important day in the last few months. This is because the price has now done what it was supposed to do and that is to rally slightly above the 38.2% fib retracement mark. We saw the same happen during the last cycle before the price came crashing down. Conditions are ripe for the market to do that now. We might see a short squeeze near term as greedy bears are punished but the inevitable is going to happen sooner or later. The price is long overdue for a major correction and this is the right time to start expecting it.

The daily chart for BTC/USD shows that the price has been on a wild frenzy for the past few months. This parabolic run up certainly cannot continue in perpetuity and sooner or later we are going to see a major correction. The price now has no reason to stall a move to the downside. It has done what we expected it to do and the bears have every reason to be greedy now. In fact, this might be the perfect time to consider short selling. However, just like we dollar cost average our buys in, it might be a good idea to short sell with that in mind, because to traders it makes no difference, buying selling, fud or fomo. Bitcoin (BTC) is now very close to $10,000 and there is a strong possibility that any move from here is going to be a quick one. If we get a strong move up, that would mean a massive short squeeze, however, if we get a move to the downside, it would mean a big crash.

If we look at the daily chart for BTCUSDShorts, we can see that shorts have stacked up significantly in the past two weeks. This has put the market makers in a tough spot and thus we should prepare for all eventualities. While it is tempting to believe that the market is due for a sharp decline short term and it is going to come down anytime now, it is important to realize that a lot of retail bears have the same idea which is exactly why it may not be so obvious.

The $10,000 mark is a strong psychological barrier. If the market makers can succeeding in taking the price past that mark, it could trigger a new wave of FOMO into the market near term and why might see more buyers get trapped in here before the whales actually pull the plugs and force the next downtrend. As we have mentioned time and time again, this might be the last opportunity for those holding their bags to sell because in a few weeks and months from now, we are going to see a lot of blood on the streets.