The recent short squeeze in cryptocurrency has seemingly played out, but the question remains how high prices will go and if there will be continuation to the upside. Aggregate CBD, or spot-driven interest in the market, has been down trending for some time, indicating that there isn’t much interest. However, leverage has been flat throughout and has recently started to tick back up, indicating shorts covering their trades. Altcoins have rallied, but it is too soon to tell if the bounce will continue. Overall, the main area of interest is the 200-day moving average for the S&P 500.
H2: The Short Squeeze and Price Predictions
The Foreign Youtube channel recently discussed the short squeeze in Bitcoin and how it played out in the market. However, the question remains as to how high the price will go, and if there will be continuation to the upside. In this article, we’ll take a look at the important levels to watch in the market.
H2: Aggregate CBD and Leverage
A tweet from 52 skew was highlighted by Foreign, stating that BTC perps are “going ham” and a reaction is soon to come. Aggregate CBD, which measures spot-driven interest, has been down trending for quite some time. On the other hand, leverage has been relatively flat and has recently begun to tick back up. This means that shorts are covering and flipping long, or new traders are jumping in to go long.
H2: High Time Frame and Vix Analysis
Foreign highlights the monthly chart and keeps an eye on the monthly close; the main area of interest is the 13,957 key monthly level. They expect a major reaction over there and potentially a bottom formation in early next year. The Vix analysis shows that the Vix is coming into those low regions again and could potentially bounce, leading to the next major trend-changing move.
H2: Altcoins and the Pivotal Level
Foreign mentions total three, which excludes Bitcoin and Ethereum, and shows a simple trend line where price temporarily broke below but is now reacting off of that zone. They mention a potential bullish case, which is still just a relief rally, and expects a lower high before the market eventually breaks down to lower levels. The article includes the 200-day moving average as the pivotal level to watch in the market.
In conclusion, Foreign’s analysis highlights important levels to watch in the market, including the aggregate CBD and leverage for shorts and longs. The article also highlights the importance of the monthly close and the Vix analysis, which shows potential areas of reaction. In terms of altcoins, Foreign mentions a potential bounce but ultimately expects a lower high before the market breaks down to lower levels.