My original bear pennant did not break to the downside and trigger 6350 as a short position a few days ago, as BTC bounced upwards.
For a brief moment it appeared as Bitcoin could perform a bullish bounce.
However from watching the market behaviour and seeing what the past hours has revealed, it looks more and more like marketmakers stepped in to make secure a short position for themselves on Bitmex, OKEX or CME before allowing the price to dump further.
We saw a minor increase of margin longs during the short squeeze push from 6.1k to 6.8k, indicating all buys was spot and not long positions. Meanwhile to the market it indicated huge buying influence accompanied by massive bid walls to assure buyers the price would not fall back. All dips was instantly bought back to same level as well.
All in all, a great setup to abuse as a big fish in this game and squeeze the small fish.
What to make of all this non sense.
Assuming above behaviour is somewhat correct, big fish has loaded up massive ammo of BTC to sell over the next days to beat the price into submission and final penetrate that heavily supported 6k floor. We need a massive volume penetration to get through, which we know marketmakers have.
Even if i am wrong assuming the behaviour of the marketmakers to have absorbed thousands of BTC to sell over the next days, you have to remember that someone is still on the other side of these trades and have to make a decision to weather the storm or take their loss and sell as the price pushes down.
According to trading etiquette they'll be forced to cover and sell in both scenarios if 6k goes, which looks likely.
Best of luck.
For a brief moment it appeared as Bitcoin could perform a bullish bounce.
However from watching the market behaviour and seeing what the past hours has revealed, it looks more and more like marketmakers stepped in to make secure a short position for themselves on Bitmex, OKEX or CME before allowing the price to dump further.
We saw a minor increase of margin longs during the short squeeze push from 6.1k to 6.8k, indicating all buys was spot and not long positions. Meanwhile to the market it indicated huge buying influence accompanied by massive bid walls to assure buyers the price would not fall back. All dips was instantly bought back to same level as well.
All in all, a great setup to abuse as a big fish in this game and squeeze the small fish.
What to make of all this non sense.
Assuming above behaviour is somewhat correct, big fish has loaded up massive ammo of BTC to sell over the next days to beat the price into submission and final penetrate that heavily supported 6k floor. We need a massive volume penetration to get through, which we know marketmakers have.
Even if i am wrong assuming the behaviour of the marketmakers to have absorbed thousands of BTC to sell over the next days, you have to remember that someone is still on the other side of these trades and have to make a decision to weather the storm or take their loss and sell as the price pushes down.
According to trading etiquette they'll be forced to cover and sell in both scenarios if 6k goes, which looks likely.
Best of luck.