Price is creating Lower highs after the drop from 82k rejection.
OI is climbing hard while both CVDs are dropping rn.
Bears are actively building their short positions, which can get us a continuation to lower as far I can see.
Perp and spot CVDs are declining rn + we got some long liquidations previously, and looking at how things are, I am expecting more longs to get flushed soon.
Currently 80k is being tested for the again with the highest OI (bearish) yet.
There are 2 possibilities here that I am looking for,
Price holds above 80k and CVDs start rising and we will get shorts squeezed back to 82k.
Or we lose it and with the current internals price sweeps the lows and pwO will be tested.
DXY is once again sitting in the same bottoming structure on a 10-year trend line while BTC pushes into a potential local high.
Historically, every time BTC has topped, DXY has rallied shortly after. Although BTC topped around 7 months ago, DXY has yet to see the upside expansion it has shown in previous cycles.
If this correlation continues to play out, BTC should begin transitioning lower while DXY starts the next leg higher.