#BitcoinDipsBelow$81K
Bitcoin broke $81,000. It touched about $80,500 and bounced back above $81,000. Now the question: is this a hunt, or just the crowd?
I will say what I believe. This kind of flush happens at every price. At 81,000, at 126,000, and if Bitcoin ever reaches 200,000, it will happen there too. Why? Because stops sit where the crowd sits.
A New York Fed study of currency orders found it. Stop-loss orders cluster just beyond round numbers, and price speeds up after it crosses them. That study is old currency data, not crypto. It shows a pattern, not a hunter.
Today fits it. Glassnode saw a large block of resting bids on Binance between $81,000 and $81,250. Price broke through. More than $1 billion in crypto positions were liquidated in 24 hours, about 90% of them longs. The sources disagree on exact numbers. A good part of it was Ethereum, not only Bitcoin.
The trigger was not secret. Oil up, yields up, and the Fed minutes pointing to another hike. US Bitcoin ETFs lost about $485 million in one day.
Liquidity providers? They quote buy and sell prices so trades can happen. Do some also take advantage of clusters? Maybe. Can I prove it? No.
What I CAN do:
Keep my stop beyond the crowd’s number, not on it. Use smaller size so my stop can survive a sweep. Keep leverage low near big clusters like $81K and $75K.
What I CANNOT do:
Prove anyone is hunting me. Say Bitcoin “always” does this. Know if $80K is the floor.
The crowd’s stop is the other side’s opportunity. I won’t hand it over.
Follow me, Abdul S Crypto Research, for true voice.
#Bitcoin #LiquidityProvider #RiskManagement
Bitcoin broke $81,000. It touched about $80,500 and bounced back above $81,000. Now the question: is this a hunt, or just the crowd?
I will say what I believe. This kind of flush happens at every price. At 81,000, at 126,000, and if Bitcoin ever reaches 200,000, it will happen there too. Why? Because stops sit where the crowd sits.
A New York Fed study of currency orders found it. Stop-loss orders cluster just beyond round numbers, and price speeds up after it crosses them. That study is old currency data, not crypto. It shows a pattern, not a hunter.
Today fits it. Glassnode saw a large block of resting bids on Binance between $81,000 and $81,250. Price broke through. More than $1 billion in crypto positions were liquidated in 24 hours, about 90% of them longs. The sources disagree on exact numbers. A good part of it was Ethereum, not only Bitcoin.
The trigger was not secret. Oil up, yields up, and the Fed minutes pointing to another hike. US Bitcoin ETFs lost about $485 million in one day.
Liquidity providers? They quote buy and sell prices so trades can happen. Do some also take advantage of clusters? Maybe. Can I prove it? No.
What I CAN do:
Keep my stop beyond the crowd’s number, not on it. Use smaller size so my stop can survive a sweep. Keep leverage low near big clusters like $81K and $75K.
What I CANNOT do:
Prove anyone is hunting me. Say Bitcoin “always” does this. Know if $80K is the floor.
The crowd’s stop is the other side’s opportunity. I won’t hand it over.
Follow me, Abdul S Crypto Research, for true voice.
#Bitcoin #LiquidityProvider #RiskManagement