Most price surges that break all-time highs of $BTC don’t end in jubilation; they often trap those who jump in and chase the latest buys. A 4H candle that just surged more than 3% and reclaimed the 80,000 USD mark can easily make everyone restless, fearing they’ll miss the boat—but buying when the market is overly euphoric is the fastest way for your account to suffer a deep drawdown.
When the price smashes through every bearish expectation previously held by major funds like CoinShares and rips straight past 80,000 USD, short-sell liquidity gets wiped out and the funding rate starts to heat up. History shows that pushes like this are usually accompanied by $ETH and the entire derivatives market being stretched, creating conditions for two-sided liquidity hunts that wipe out high leverage.
If you’re planning to open a new position right now, the risk of a pullback to fill the liquidity imbalance zones below is extremely real.
Are you planning to take profits in portions, or are you still going to hold your position through this level?
#Bitcoin #CryptoAnalysis #RiskManagement
When the price smashes through every bearish expectation previously held by major funds like CoinShares and rips straight past 80,000 USD, short-sell liquidity gets wiped out and the funding rate starts to heat up. History shows that pushes like this are usually accompanied by $ETH and the entire derivatives market being stretched, creating conditions for two-sided liquidity hunts that wipe out high leverage.
If you’re planning to open a new position right now, the risk of a pullback to fill the liquidity imbalance zones below is extremely real.
Are you planning to take profits in portions, or are you still going to hold your position through this level?
#Bitcoin #CryptoAnalysis #RiskManagement
