$Bulls are coming. This move is up 2.82% in 15m, with volume surging to 3.4x. Price has broken above the highs of the last 20 5m candles—looks pretty strong.
But look closer: OI is down 0.87% over 15m and 0.80% over 1h. Price is rising while open interest is falling—a textbook short squeeze. The taker volume delta is -24.1%, and the buy/sell ratio is 0.61. Selling pressure is driving this rally, which suggests shorts are getting squeezed rather than new longs coming in.
I generally don't like chasing this kind of setup. When a move is driven by short covering, the price can easily stall once the covering is over and there's nobody left to carry it forward. It ranks #10 for anomalies across the entire pool and #20 for notional change, so it's getting enough attention, but the quality is mediocre.
I'll take another look when OI starts turning upward again. For now, it's better to watch than to act.
But look closer: OI is down 0.87% over 15m and 0.80% over 1h. Price is rising while open interest is falling—a textbook short squeeze. The taker volume delta is -24.1%, and the buy/sell ratio is 0.61. Selling pressure is driving this rally, which suggests shorts are getting squeezed rather than new longs coming in.
I generally don't like chasing this kind of setup. When a move is driven by short covering, the price can easily stall once the covering is over and there's nobody left to carry it forward. It ranks #10 for anomalies across the entire pool and #20 for notional change, so it's getting enough attention, but the quality is mediocre.
I'll take another look when OI starts turning upward again. For now, it's better to watch than to act.