Swim with the Whales or Get Eaten By One
Here's an idea. *Not financial advice. BTC is coiled up for a breakout and the market is percolating with anticipation. Unfortunately for the bulls, thus far every attempted breakout seems to be a fakeout back to the downside. Trying to figure out what is causing this, and also curious why all of the local support ranges seem to be in roughly the same size increments I studied these moves that just seem to be repeating themselves at each level. After watching this happen over and over again it is now revealing a somewhat predictable pattern.
If your' not using order book volume (OBV) to pinpoint where local resistance and support are, you should be. It's an amazing tool! Base on data from the order book, it appears that those with the big bags controlling the price action have set a huge buy wall around 7k and others are contributing to the sum of orders at and around those levels, setting some smaller buy walls in the range we are in now. Seems like they liquidate the order book down to their preset level and "allow" the market to relief rally back to their sell wall that keeps appearing, getting cleared, and then reappearing at the same level ($7195 until an hour ago). The previous ranges and their retests at 7300, 7400 and 7500 respectively all attempt to FOMO traders back in to reload the order book, only to be liquidated by the whale(s) over and over as they short the market back down again. This process seems to be repeating itself with some consistency at everyone of these so called local support levels which, IMO act like BTC recycling stations for the whales.
At the moment I am writing this, BTC bulls have again cleared the buy wall at $7195 and the order book looks like price could run without too much resistance until (7495 currently). That would essentially allow the whales to let the bulls run their money back up before they hit the reset button with another buy wall and start recycling orders again. How far the whales "allow" the bulls to run remains to be seen, but there are recycling stations of resistance in the form of buy walls at prior, so called local support levels starting at 7495 and moving up in the roughly the same increments they came down. While the bulls seem to be making up some of the deficit in the order book, they haven't yet mustered enough momentum to run.
The looming question in every traders mind is will BTC hold above the buy wall at 7k. There is certainly enough sentiment and whale buying power to dump the market down to and beyond the buy wall at 7k, but don't be surprised if they reload and recycle a few more times along the way.
Regardless of whether your sentiment is long or short it's becoming more and more evident that to succeed in this market which seems rife with manipulation you must identify what the whales are doing and swim with the pod or get eaten like krill.
*Disclaimer: I am not a financial advisor. Not financial advice. Trading is extremely risky. DYOR. I trade crypto and securities.
If your' not using order book volume (OBV) to pinpoint where local resistance and support are, you should be. It's an amazing tool! Base on data from the order book, it appears that those with the big bags controlling the price action have set a huge buy wall around 7k and others are contributing to the sum of orders at and around those levels, setting some smaller buy walls in the range we are in now. Seems like they liquidate the order book down to their preset level and "allow" the market to relief rally back to their sell wall that keeps appearing, getting cleared, and then reappearing at the same level ($7195 until an hour ago). The previous ranges and their retests at 7300, 7400 and 7500 respectively all attempt to FOMO traders back in to reload the order book, only to be liquidated by the whale(s) over and over as they short the market back down again. This process seems to be repeating itself with some consistency at everyone of these so called local support levels which, IMO act like BTC recycling stations for the whales.
At the moment I am writing this, BTC bulls have again cleared the buy wall at $7195 and the order book looks like price could run without too much resistance until (7495 currently). That would essentially allow the whales to let the bulls run their money back up before they hit the reset button with another buy wall and start recycling orders again. How far the whales "allow" the bulls to run remains to be seen, but there are recycling stations of resistance in the form of buy walls at prior, so called local support levels starting at 7495 and moving up in the roughly the same increments they came down. While the bulls seem to be making up some of the deficit in the order book, they haven't yet mustered enough momentum to run.
The looming question in every traders mind is will BTC hold above the buy wall at 7k. There is certainly enough sentiment and whale buying power to dump the market down to and beyond the buy wall at 7k, but don't be surprised if they reload and recycle a few more times along the way.
Regardless of whether your sentiment is long or short it's becoming more and more evident that to succeed in this market which seems rife with manipulation you must identify what the whales are doing and swim with the pod or get eaten like krill.
*Disclaimer: I am not a financial advisor. Not financial advice. Trading is extremely risky. DYOR. I trade crypto and securities.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.