Bang !! Long candle wick down. Trying to liquidate long positions. This is not letting the price of Bitcoin rise
I told you a few hours ago that a big wick was coming down.
People Overleverage Long and Hold Bitcoin Price Rising
We will see
A few hours ago I made an article about Bitcoin and how investors are over-leveraging and the price of Bitcoin slows
This is the link of the article in which I analyze the bullish pattern of Bitcoin
This makes it unable to break out of the range in a bullish way.
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Let's start at
With the wick down, the leveraged positions were cleaned up a bit, but in minutes and in these hours it rises again.
The price wants and must go up, because since there is less supply in the exchanges it has to go up, but the overleverage is not allowing it.
What is strange is that there were no large liquidations which means that the positions are at lower values.
What they also do when raising the funding rate is to force the position to close due to the high cost of keeping it open.
Three possibilities
The price continues to rise
The buy price, the scarcity of Bitcoin on the exchanges, can cause the price to continue slowly to rise with short candles to the upside interspersing some with a large correction wick. For investors who have positions, the price rises but also the cost because the funding rate will continue to rise.
Price lateralization
With price latency, the cost of keeping the position open increases, opting at some point for the investor to close it in search of a better investment.
Bitcoin if it lateralizes, it is favoring the Alcoins, something that has been happening a few hours ago.
Continue down
The price could go back to $ 59,000, the bottom of the channel trying to liquidate higher positions.
What you think?
Protect your assets use Stop loss
The alcoins market is very dependent on the price of Bitcoin, when Bitcoins goes up the alcoins go up more, but also in the other sense, so I suggest that you periodically review a Bitcoin and use stop loss and move it when they are already in profit. Do not let a profit become a loss.
We will continue monitoring To be attentive Protect your Investments
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READ DISCLAIMER: this publication / analysis is only for general information purposes. I am not a professional trader and I will never be a financial advisor. The material in this publication does not constitute any trading advice of any kind. This is the way I see the paintings and what my ideas are. Perform your own analysis before making an investment decision. Use money that you are willing to lose if you make an investment. If you make exchanges or investments after reading this publication, it is entirely at your own risk. I am not responsible for any of your gains or losses. By reading this publication, you acknowledge and agree that you will never hold me liable for any of your profits or losses.
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