I was looking at the leverage heatmap in the futures markets and what I see is a huge amount of energy pushing Bitcoin toward a drop. There is very little liquidity above; you can see it yourselves. Above the current price, specifically in the $70,000 to $80,000 area, there is very little money. That, without a doubt, is a very small incentive to go directly to $72,000, simply because it doesn’t generate big gains for market makers (the manipulators). They know that up there there isn’t enough "fuel" from short positions to burn.

The great pool of liquidity is down there, where there is a mountain of massive liquidations that has been building up for a while. It’s a low zone that few people talk about, but since I’m dedicated to showing the real face of the market, I’ll share my personal view: if I’m wrong, it’s because the market was manipulated. The biggest liquidity well (an authentic sea of millions of dollars where all of us would like to be) is located between $48,000 and $50,000 for Bitcoin.

It’s very likely that we’ll see a quick, violent manipulation spike towards the $68,000 or $69,000 area before a strong drop, but in my opinion that would be healthy and necessary for the bull to rise, after the elections and the defeat of the Trumps, to $120,000. Remember that the algorithms of institutions (I’ll call them that so they don’t censor the post) and of market makers (those market makers that the paid YouTubers talk about so much) need to drive that trap towards $68,000/$69,000. Their goal is to make the FOMO explode in us, retail investors, so that the whales can sell Bitcoin and other cryptocurrencies at excellent prices. Because they need desperate buyers, those who fall for the FOMO will be their victims.

If the manipulators carry out this quick move and put Bitcoin at the doors of $70,000, the usual YouTubers will scream that the correction is over and that we’re going to the stratosphere. However, at $68,500 there’s a significant accumulation of stop orders (stop-losses) from those trading to the downside (short). Market makers often push the price just above those levels to force those orders to trigger, creating a cascade of automatic buys that inflates the price artificially for a few minutes or a few hours. That’s how they clean the board before the crash.

Finally, they should know that open interest in futures is at dangerous annual highs; the markets are too overloaded. A bullish spike would liquidate impatient bears, trap lagging buyers, and leave the stage set for a clean correction, with no resistance, towards $58,000 or $56,000, and even lower.

Giorgio Sferrazza

Bachelor's Degree in Business Administration

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