$BTC This drop was aimed at hunting long-side liquidity—in other words, triggering long stop-losses.
Especially when the price broke below the 825 support, net long positions fell rapidly while short positions rose rapidly. This shows that the longs opened at the 825 support were stopped out and closed, while orders opening shorts after the breakdown piled on, causing a sharp drop with a long wick!
Now that most of the longs have been stopped out, the market makers will inevitably push the price up in a choppy move next, triggering short stop-loss orders—that is, buy-side liquidity!
Based on this logic, look for long opportunities on pullbacks, and make sure to use a stop-loss.
I don't recommend shorting anymore.
Add to that falling U.S. Treasury yields and falling oil prices—both markets broke out and then fell back below their breakout levels.
This macro backdrop clearly favors BTC rising. DYOR.
You'll also notice that position delta is negative,
but the price at $BTC has risen.
This suggests that significant capital is buying in the spot market.
If this rise continues, shorts are about to get squeezed!
Everyone, please manage your risk.
Especially when the price broke below the 825 support, net long positions fell rapidly while short positions rose rapidly. This shows that the longs opened at the 825 support were stopped out and closed, while orders opening shorts after the breakdown piled on, causing a sharp drop with a long wick!
Now that most of the longs have been stopped out, the market makers will inevitably push the price up in a choppy move next, triggering short stop-loss orders—that is, buy-side liquidity!
Based on this logic, look for long opportunities on pullbacks, and make sure to use a stop-loss.
I don't recommend shorting anymore.
Add to that falling U.S. Treasury yields and falling oil prices—both markets broke out and then fell back below their breakout levels.
This macro backdrop clearly favors BTC rising. DYOR.
You'll also notice that position delta is negative,
but the price at $BTC has risen.
This suggests that significant capital is buying in the spot market.
If this rise continues, shorts are about to get squeezed!
Everyone, please manage your risk.