Bitcoin is currently still consolidating after the recent bounce from $6515. This consolidation has extended a bit more than the bulls would have liked to see, however, it is still ok for them. The bulls are looking to set a higher low as the trading volume continues to go down.
This is what is known as the ‘calm before the storm’ and happens all the time. This doesn’t mean the big move will be in favor of the bulls.
Some Concerns for the Bulls
Although the bulls are still looking for a higher low compared to $6515, the possibility of a long squeeze is quite real right now. On Bitfinex, longs on Bitcoin have been growing for the past two weeks and hit a 10-monthly high.
If the bears can break below $7000, a long squeeze will certainly be imminent and could bring Bitcoin below $6000 in a violent move to the downside.
The bulls are also looking to break above the daily EMAs as they currently have no support until $6515.
There is one thing that can help the bulls, the daily RSI remains quite extended and might stop the bears. However, the RSI is not going to act as support if a long squeeze happens.