Classic long squeeze
• A sharp spike up to 4.62370, followed by an instant drop back to 4.28. This is known as "taking out stops and liquidity".
• The wick on top is huge, while the body of the candlestick is small. The bots collected liquidity above the highs and dumped the price.
• Volume: There was a massive spike in volume at the peak: Vol: 3M. This is exactly what a squeeze looks like.
Conclusion
A big player pushed the price up, collected the stops of the shorters + lured in the long traders, and then immediately unloaded on them. Everyone who jumped in on the breakout above the high is now sitting in the red.
What's next:
1. The level 4.27 - 4.28 is currently support from EMA7/25. If it holds, there might be a bounce.
2. Resistance above is at 4.388 from EMA99 and 4.404 - 4.43 where there were a lot of sell orders. 3. Volume has dropped after the squeeze. Typically, after such a squeeze, it leads to sideways action or a slow drift down.
$LAB
• A sharp spike up to 4.62370, followed by an instant drop back to 4.28. This is known as "taking out stops and liquidity".
• The wick on top is huge, while the body of the candlestick is small. The bots collected liquidity above the highs and dumped the price.
• Volume: There was a massive spike in volume at the peak: Vol: 3M. This is exactly what a squeeze looks like.
Conclusion
A big player pushed the price up, collected the stops of the shorters + lured in the long traders, and then immediately unloaded on them. Everyone who jumped in on the breakout above the high is now sitting in the red.
What's next:
1. The level 4.27 - 4.28 is currently support from EMA7/25. If it holds, there might be a bounce.
2. Resistance above is at 4.388 from EMA99 and 4.404 - 4.43 where there were a lot of sell orders. 3. Volume has dropped after the squeeze. Typically, after such a squeeze, it leads to sideways action or a slow drift down.
$LAB
