BTC- Quick derivative analysis$8 billion liquidations were triggered when BTC briefly crashed to 31k on Wednesday,
This morning, over $7.5B in Bitcoin open interest was wiped out, bringing total OI back to levels last seen in early February.
Right now, oversold signals can be seen across the board and I think this is exactly what we need to shake out weak hands and over-leveraged positions.
Longliquidation
BTC- Safe asset? The moment of reckoning! PA/OF analysistwitter.com
All these talks about BTC being the safe asset during the economic turmoil and Financial crisis...
It is now the perfect time for it to step up to the plate and rise to the occasion. Is it finally BTC's moment to shine?
Let's take a quick look at what happened during the weekend.
The fast and furious drop is the result of thin liquidity and IMO, a pure long liquidity grab move. The price did not get violently rejected at the 9.2k because of the extreme momentum, crazy volume, high volatility and overheated buying pressure.
In other words, it was not a blown-off top resulting from the overbought status. The price reversed because the lack of short liquidity (Lack of buyers at 9.2k or weak buying power relative to the strong limit sell orders/walls at 9.2k).
Therefore, I expect it to be the profit-taking move by whales and, whales are possibly building up more long position through split orders.
Fear index is below 20 and the the last time it happened BTC rebounded from 6.5k.
Fast and furious pullback with no bounce like this one BTC is currently experiencing cannot last long. I expect at least some relief rebound. If not, 7.2k here we come.
Proceed with caution and focus on the HTF when the volatility is high.
Please like and follow me if find my post helpful :)
BTC- Go lower in order to bounce higherHello traders!
Despite the 100 millions long liquidation and the drop of 10% open interest during the epic bull trap last week, the maximum selling pressure still seems far away.
The only way to go up is to dip down further in order to reach for more selling liquidity.
I believe we will continue to see more moderate supply runs follow by weak demand runs until strong limit sell orders and sell walls show up with the conviction.
Of course, not completely ruling out the possibility of the bull flag momentum run yet. Though unlikely judging by the weak daily buy volume.
Please click like and follow me if you find my analysis useful. Happy trading :)
Please do your own due diligence and research. My analysis is only my opinion, not the investment advice.
twitter.com