The falling wedge I previously drew just confirmed once again. The support broke so the breakout failed, and this wedge may break downward from here. If so, we are going to see further downward action as there's really no support beneath us until the 5-6k mark.
If this support holds we may see an upward move soon. I'd watch to see how long this bottom support is tested. The longer it holds in the lower half, the worse.
The reason we are seeing such severe movements up and down in btc lately is simple - more and more retailers are margin trading. Thanks to shit companies like ByBit and binance getting their scammy hands around all of crypto twitter and crypto youtube, everybody thinks trading on margin is a good idea - but this is just providing cheap liquidity for accumulators, forcing you to sell your btc at prices you don't want to sell at, as millions in btc is liquidated.
Anybody you see shilling bybit or talking about margin trading like it's not gambling should be ashamed. The institutional traders I know never trade high margin, ever.
Note that this isn't the reason for the drop, but it is the reason for the severity.
If this support holds we may see an upward move soon. I'd watch to see how long this bottom support is tested. The longer it holds in the lower half, the worse.
The reason we are seeing such severe movements up and down in btc lately is simple - more and more retailers are margin trading. Thanks to shit companies like ByBit and binance getting their scammy hands around all of crypto twitter and crypto youtube, everybody thinks trading on margin is a good idea - but this is just providing cheap liquidity for accumulators, forcing you to sell your btc at prices you don't want to sell at, as millions in btc is liquidated.
Anybody you see shilling bybit or talking about margin trading like it's not gambling should be ashamed. The institutional traders I know never trade high margin, ever.
Note that this isn't the reason for the drop, but it is the reason for the severity.