Bitcoin Puts The Heat On The Bears

Bitcoin bears have been very confident lately as some of the popular accounts on Twitter turned bearish. For me, that was one of the biggest red flags for the bearish case. These accounts almost always mislead their followers and the same thing happened today as you can see. They have been actively boasting about their bearish positions since $9.2k and now the price has pumped past $9.4k and we expect it to go higher near-term. The key to success in any market is to against the consensus. If many people agree with you, it means something isn’t right.

For the past couple of days, we have been constantly talking about a bullish breakout in BTC/USD to put the heat on retail bears that had their stops between $9.2k and $9.7k. There are also many traders with their stops between $10.5k and $9.5k. The interesting part is, most of those shorts are unhedged. This is like a big honey pot for the market makers and whales to exploit and they have done it in the past. This time as we can see, the move is aggressive as before and the price broke higher in just a few green candles.

Most bear hunts work this way. They are abrupt but strong moves that leave retail bears with no time to think. This time, this move in the cryptocurrency market has corresponded to a move higher in the S&P 500 (SPX) exactly as we had anticipated. This means that both markets can now see near-term further upside and for that reason we would continue to be bullish on the market till it tops out again. That being said, it is very important to realize that the larger trend is bearish and we mustn’t lose sight of our bearish target of $3k which is exactly where Bitcoin is headed after this move is completed.