DataMoney

Why markets force-sell? How BTC squeeze push the price down?

Short
BITSTAMP:ETHUSD   Ethereum / U.S. Dollar
This weekend has been very interesting. BTC is dominating the market price and all other cryptos are forced to follow. However, the demand has dried up and while BTC was still moving up, most altcoins started to slightly move down. Late Friday / early Saturday hype did not save BTC , after a number of high profile people trying hard to hype the market for yet another bull run week overleverage Longs got liquidated. So what happened?

Have you ever heard saying: "Market always wins"? In general, most exchanges always win regardless of the price. Whether it is going up or down, regardless of who wins or losses most exchanges will be charging their fees. However, a little less known fact may surprise you - most exchanges time to time try to force the price up/down to liquidate overleveraged positions. That's right. There are more and more people talking about exchanged purposefully working to earn easy money by liquidating their customer's! This is what happened last Saturday, the 20th of Feb, 10pm GMT . In less than a minute, BTC price dropped to $54k, ETH price dropped to $1800 and bounced right back. According to numerous sources during that 1 minute about $1.8 billion of overleveraged Longs were liquidated. Of course, the price bounced right back after this "force-drop" and markets continued on their regular trajectory afterwards.

Now, we all know this sounds fishy. It does beg a question: what can an average Joe do about it?
We all know that trading is a risky business. You may win, you may lose, however, would you still be tempted to trade if you knew that these markets are always seeking ways to take advantage of you and liquidate your funds? Drop your thoughts in the comments below.

I am not a financial advisor nor a professional trader. My joy and fascination lay with data and technical analysis . However, these market nuances really caught my attention. No one likes to lose or be in a position where others take advantage of you. Everyone with early access to my TA's know that so far we are all making a quite stable risk-averse profit. But the question still remains - what can an average person do not to lose against the market?
What can be done to level the playing field? Share your thoughts in the comments below.
Extra karma points for anyone who can share good insights, research articles or other resources on this topic.

Today's technicals:
Position is short (people with early access already know that we have been shorting since ETH $1860, and already closed today's target! πŸ₯³) (No magic, we just got lucky πŸ˜‡)
Forecasted highs at 1980 and unlikely 2040
Mid-way point at 1920
Forecasted lows at 1820 and 1780

Have fun trading! πŸ€‘


If you would like to have early access to my TA's, write "I am interested to learn why markets force-sell" or "I am not interested to learn why markets force-sell" in the comments down below πŸ˜‰

Comments

Hmm interesting thoughts, so why play the market why not let the market lead. Let the market come to the trader. Average Joe should educate online prior to jumping in getting lucky and having it explode on them.
Educate average joe so he risk manages and takes the entire cost of a trade into account understands risk vs reward, research/due diligence after all I dont think average joe would buy a car without checking it over first.

There are many affordable and free online crypto trading courses that people can take to educate and inform themselves as well as many sources of information on the token/coin you want to buy into.

I guess at the end of the day it is each persons responsibility to minimise risk of loss through education and knowledge. Below are my rules on trading crypto for myself.

Ignorance is not an excuse for losing your money.
The house always wins if you overtrade.
Dont trade tired
Dont drink/take drugs and trade
Be patient
Be patient
BE patient

Love your work

Cheers
+4 Reply
Either lucky or not, we just play what market gives not personal bias. You right on point saying that house always win that's why proper money management play such an important role in trading. Know your risk before entering the market. Cheers mate
+2 Reply
I am interested to get the data moniesssss
+2 Reply
Another wonderful post. Being short to wake up to the carnage felt good thanks to analysis like yours! Patience now for some consolidation... looking forward to your next post
+1 Reply
I am interested in force sell.
+1 Reply
I am interested to learn why markets foece_sell
I have blown couple of my accounts due to this in gold/gbpusd trades too....since than I am more often glued to my phone/laptop and trying to scalp for only few hours ....would like to know who are behind this sudden drops which take in minute
+1 Reply
I am interested to learn why markets force-sell

I've found your advice to be really helpful - as you also describe the thinking behind the market. I would like to have early access to your TA's please.
+1 Reply
IAM interested to learn why.
Reply
I’m interested
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ITLWMFS
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