The nightly price impulse of $65,000 is claiming the status of a long squeeze, but the main condition for confirmation has not been met. The price has not transitioned into a sustained uptrend on the 3-hour timeframe, which means the trend for speculative positions according to our strategy has not changed. However, overnight, the price transitioned into a sustained uptrend on the 2.5-hour timeframe, which often 'spoils' the uptrend on the 3-hour. But this does not guarantee it. The basic targets for this uptrend are $67,948, $68,615, and $69,283. The potential breakdown level is $66,279.
On the 5-minute timeframe, the price currently has a density of targets up to $68,468, and as long as the price is in an uptrend, the targets can be taken by impulse. Moreover, the targets go right up to the liquidity zone of $68,482-$68,640. The liquidity zone of $67,294-$67,422 acts as support.
So far, the correction from today's high of $67,911 is the reaction from the Strong signal potential high on the 5-minute chart.
But the growth may well continue. The lost uptrend on the hourly timeframe was quickly restored by the bulls overnight, and the nearest target has already been worked out.
Our short position, let us remind you, has been standing since night with a stop in positive breakeven at $68,492. In favor of the hypothesis that the rebound may be over and the correction has ended, there are currently several signals:
- the mentioned Strong signal high on the 5-minute timeframe,
- this is already the second usual mark of a potential high on the hourly timeframe.
According to horizontal levels, the price is stuck between $67,300 and $67,797. As long as the price is above $67,300, the bulls are holding the situation.
An important point - on higher timeframes, such as the daily, this growth is just a retest of the exit from the "Bear Flag".
Plus, the price is still below the level of a potential breakdown of the uptrend on the daily timeframe at $67,698. And it still hasn't consolidated above the liquidity zone of $65,468-$68,350.
The picture at the moment is contradictory, and we need to get more new inputs for the forecast. Until then, we simply continue to hold the short with a stop in positive breakeven.