Nice Short Squeeze Move But Not Out of the Woods

This is the highest volume we have seen for a long time and definitely sets up for a potential bottom. However, I am still not fully convinced that this is the bottom for a couple of reasons. The price action is predominately a result of large number of margin shorts being squeezed and not long-term spot buying. Total of 16,000 Shorts closed on bitfinex today alone just give you an idea. Secondly, we have not yet broken out of the major downtrend. If we can close around $7,800 today, the uptrend would be more convincing. For now, it looks like a no trade zone for me if you were conservative, but if I had to bet; I'd still be short with a very tight stop.