Take a look at some of the most heavily shorted alt-coins. XRP and BCH are 2 great examples. As BITTREX:BTCUSD Bitcoin
prepares to breakout, some of the laggards are likely to follow suit. XRP (top chart) is approaching the very apex of a falling wedge
and is severely oversold. The coming breakout could bring it as high as $0.95 in a matter of weeks. BCH is an example of an alt coin has already begun to show signs that shorts are giving up...the daily chart
shows higher lows and higher highs with a consolidation pattern on the shorter timeframes. It may be building a rising wedge
on the higher timeframes similarly to litecoin or bitcoin
, so taking profits on a strong breakout before it pulls back again (to around 150 at least) would be smart. Still, the path of least resistance is currently up on most cryptos, and as we've seen before, bull runs and short squeezes alone can be relentless....add a little FOMO and we could be off to the races. I wouldn't be shifting my long-term savings to this sector quite yet, but there are likely to be many more bullish
patterns playing out than there has been for the last year. If you're short, do yourself a favor and get out of the way now....but if this rally fails hard, be my guest to pile back in for that wave 5 downwards.