ARBUSDT | Long Bias | Descending Structure + Long Squeeze Setup | (May 13, 2025)
1️⃣ Short Insight Summary:
Arbitrum has been consolidating in a large descending triangle since early 2024. With spot selling pressure rising and shorts stacking in, this setup could build toward a classic short squeeze if the structure breaks upward.
2️⃣ Trade Parameters:
Bias: Long
Entry Zone: Around $0.36–$0.33
Stop Loss: $0.2193 (below key structure low)
TP1: $0.50
TP2: $1.00
Final TP: $1.24 (macro extension target)
Partial Exits: Suggested at $0.50 and $1.00 to manage risk and secure profits along the way
3️⃣ Key Notes:
✅ From January 2024, ARBUSDT has formed a broad wave structure that now compresses into a descending triangle or possibly a parallel channel, both suggesting a breakout is building.
✅ Open interest is increasing, and data shows more shorts than longs, making the case for a short squeeze if price holds above $0.33 and starts pushing up.
❌ Spot selling is still dominant, so caution is required—wait for reversal signals or strong wicks at the support zone.
✅ Bigger timeframes still lean short-biased, but that aligns well with our contrarian long entry plan.
4️⃣ Optional Follow-up Note:
Will monitor closely for either breakdown or breakout confirmation. If squeeze structure confirms, the rally could be steep due to overleveraged short positions.
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Disclaimer: This is not financial advice. Always conduct your own research