【$CRCL Signal】Short squeeze continues, 1H strong consolidation followed by a new high

$CRCL The 1H timeframe experienced a violent surge of 32% yesterday and is currently consolidating strongly at high levels. The 4H chart shows three consecutive bullish candles establishing an upward trend. Currently, the 1H candlestick is trading above the EMA20 (77.85), with decreasing volume, indicating a healthy consolidation after a breakout. Open interest remains stable, prices are firm, and there is potential for the short squeeze to continue.

🎯Direction: Long (Long)

🎯Entry/Order: 82.70 - 82.90 (Reason: Support at 1H EMA20 and the lower boundary of the current consolidation platform )

🛑Stop Loss: 81.50 (Reason: Break below the 1H consolidation low and the bottom of the previous 4H candle body )

🚀Target 1: 84.50 (Reason: Above the previous high of 83.88, resistance at the integer level )

🚀Target 2: 86.80 (Reason: Based on the recent rally’s 1.272 Fibonacci extension level )

🛡️Trade Management:

- Position Size: Light (Reason: Significant rally within the day, extremely high volatility, increased risk )

- Execution Strategy: After reaching 84.50, reduce position by 50% and move stop loss to entry price. Hold remaining position for the second target. If the price retraces and breaks below the average entry price, exit unconditionally.

Deep Logic: The 4H chart shows a volume breakout of a consolidation zone lasting nearly two weeks, confirming trend reversal. Although the 1H RSI is high (84), it can be sustained in a strong market. Key point: there is a large sell order accumulation at 83.12 (1635 units), which is a clear resistance level. Once buy orders absorb this level and break through, it will trigger a short squeeze, accelerating the upward move. The current strategy is to position at support levels, betting on a secondary push after consolidation.

View real-time market 👇 $CRCL

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