02-23-2021, 02:51 AM
Explanation about today's dip and why price action is still very BULLISH
<table> <tr><td> <a href="https://www.reddit.com/r/CryptoCurrency/comments/lpxdfn/explanation_about_todays_dip_and_why_price_action/"> <img src="https://b.thumbs.redditmedia.com/DzoWkKIyNDQxed6N-JkYlBEYemFo3GlE0WKmuo5cSEg.jpg" alt="Explanation about today's dip and why price action is still very BULLISH" title="Explanation about today's dip and why price action is still very BULLISH" /> </a> </td><td> <!-- SC_OFF --><div class="md"><p>First of all I will start this post with saying that this is mostly my opinion, nothing here is a straight fact, also, I'm not a native English speaker so sorry for any grammar/spelling mistakes.</p> <h1>What happened today?</h1> <p>BTC price fell within a few hours from the $57,000 area to the $47,500 area.</p> <p><strong>REMEMBER!</strong></p> <p>This year bull-run is different from 2017 in 2 main aspects:</p> <p>- There are more big institutions involved in Crypto and their interest is to keep pushing the price up, the market is less controlled by retail traders, HODLers and early miners/individual whales.</p> <p>- Derivatives are much more popular.</p> <h1>What caused the dip?</h1> <p>Let's start with something that happened yesterday:</p> <p><a href="https://preview.redd.it/xdh16tw1k2j61.jpg?width=1280&format=pjpg&auto=webp&s=fa96073bc9dec951a7101d78fe67f9d7b932e41e">BTC amount on Exchanges</a></p> <p>Yesterday there was a spike in the amount of BTC on Exchanges, I believe that a big institution or a group of them moved large amounts to exchanges wallets in order to manipulate the markets after the weekend.</p> <p>​</p> <p><strong>Now lets talk about Perpetual Futures Contracts (short and simple explanation):</strong></p> <p>Futures trading became very popular in the last 2 years, high leverage is tempting because people think this is a fast ticket to become a millionaire and traders keep over-leveraging but you need to remember, when you leveraging you basically taking a loan from the Exchange, but those big companies are here to make money so they won't take the risk of you losing more money than you have because it will become their lose and not yours.</p> <p>Here's enter the term Liquidation, if your leveraged position is losing money more than your initial invested amount, a liquidation occurs and your position is being immediately covered. If large amount of positions are liquidated a market squeeze can occur.</p> <p>Market squeeze - When a large number of traders are forced out of their positions due to sudden rising or falling prices, causing more traders to close their positions. This usually called long/short squeeze.</p> <p>​</p> <h1>Back to Crypto markets today:</h1> <p>The amount of BTC futures contracts positions reached all time high </p> <p><a href="https://preview.redd.it/ne1vyv6aq2j61.jpg?width=929&format=pjpg&auto=webp&s=60288e64e56cc6afdded1e920f25ed58c3edf672">Amount of Futures positions</a></p> <p>Now lets take a look about how much of those positions got liquidated today -</p> <p><a href="https://www.bybt.com/LiquidationData">See full data here</a></p> <p>An equivalent of $3.74B long positions got liquidated over the last 24hours when $2.16B of them happened in a matter of 30 minutes, during that period BTC hit the low of $47,500.</p> <p>This is a classic long squeeze, sudden drop in the price (probably caused intentionally by institutional investors in order to buy more at lower prices) forced traders to close their positions (got liquidated) which creates FUD and make more traders to cash out to USDT (or any other stablecoin).</p> <p><strong>Why I believe today was a bullish sign?</strong> </p> <p>The market recovered really fast and we can see how there is a strong support level at $47,000 - $48000.</p> <p>Also, Coinbase whales are driving the market ,we can see from the following chart how they reacted when the price on Coinbase hit today's lows.</p> <p><a href="https://preview.redd.it/gn3t2yxwv2j61.jpg?width=1280&format=pjpg&auto=webp&s=1565c05ca553ffd8657bd78c7d89f081bdbdf404">Binance vs Coinbase price (BTC)</a></p> <h1>Key Takeaways from today</h1> <p>- Futures affect the price of the market more then in the past due to their popularity.</p> <p>- If you're a HOLDer, stop panic, avoid those dips, you're here for the long term, those dips are just a bumps in the road. </p> <p>- If you consider yourself a trader, stop loss orders are your best friend, they will protect your portfolio.</p> <p>- Be carful if you trading futures, high leverage can be tempting but also can be the death of your portfolio and cause you big losses, trade without leverage until you're really confident in your trading skills and keep the leverage low.</p> <p>- Institutional investors become a thing in the crypto world, watch out for future price manipulations.</p> <p>- Corrections are good and healthy during a big bull run.</p> <p>And most importantly - BTC is strong, Crypto is strong this is just the beginning! </p> <p>​</p> <p><strong>TL
R a long squeeze caused the dip but BTC reacted strong and fast.</strong></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/robinH0D"> /u/robinH0D </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/lpxdfn/explanation_about_todays_dip_and_why_price_action/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/lpxdfn/explanation_about_todays_dip_and_why_price_action/">[comments]</a></span> </td></tr></table>Kind Regards R
<table> <tr><td> <a href="https://www.reddit.com/r/CryptoCurrency/comments/lpxdfn/explanation_about_todays_dip_and_why_price_action/"> <img src="https://b.thumbs.redditmedia.com/DzoWkKIyNDQxed6N-JkYlBEYemFo3GlE0WKmuo5cSEg.jpg" alt="Explanation about today's dip and why price action is still very BULLISH" title="Explanation about today's dip and why price action is still very BULLISH" /> </a> </td><td> <!-- SC_OFF --><div class="md"><p>First of all I will start this post with saying that this is mostly my opinion, nothing here is a straight fact, also, I'm not a native English speaker so sorry for any grammar/spelling mistakes.</p> <h1>What happened today?</h1> <p>BTC price fell within a few hours from the $57,000 area to the $47,500 area.</p> <p><strong>REMEMBER!</strong></p> <p>This year bull-run is different from 2017 in 2 main aspects:</p> <p>- There are more big institutions involved in Crypto and their interest is to keep pushing the price up, the market is less controlled by retail traders, HODLers and early miners/individual whales.</p> <p>- Derivatives are much more popular.</p> <h1>What caused the dip?</h1> <p>Let's start with something that happened yesterday:</p> <p><a href="https://preview.redd.it/xdh16tw1k2j61.jpg?width=1280&format=pjpg&auto=webp&s=fa96073bc9dec951a7101d78fe67f9d7b932e41e">BTC amount on Exchanges</a></p> <p>Yesterday there was a spike in the amount of BTC on Exchanges, I believe that a big institution or a group of them moved large amounts to exchanges wallets in order to manipulate the markets after the weekend.</p> <p>​</p> <p><strong>Now lets talk about Perpetual Futures Contracts (short and simple explanation):</strong></p> <p>Futures trading became very popular in the last 2 years, high leverage is tempting because people think this is a fast ticket to become a millionaire and traders keep over-leveraging but you need to remember, when you leveraging you basically taking a loan from the Exchange, but those big companies are here to make money so they won't take the risk of you losing more money than you have because it will become their lose and not yours.</p> <p>Here's enter the term Liquidation, if your leveraged position is losing money more than your initial invested amount, a liquidation occurs and your position is being immediately covered. If large amount of positions are liquidated a market squeeze can occur.</p> <p>Market squeeze - When a large number of traders are forced out of their positions due to sudden rising or falling prices, causing more traders to close their positions. This usually called long/short squeeze.</p> <p>​</p> <h1>Back to Crypto markets today:</h1> <p>The amount of BTC futures contracts positions reached all time high </p> <p><a href="https://preview.redd.it/ne1vyv6aq2j61.jpg?width=929&format=pjpg&auto=webp&s=60288e64e56cc6afdded1e920f25ed58c3edf672">Amount of Futures positions</a></p> <p>Now lets take a look about how much of those positions got liquidated today -</p> <p><a href="https://www.bybt.com/LiquidationData">See full data here</a></p> <p>An equivalent of $3.74B long positions got liquidated over the last 24hours when $2.16B of them happened in a matter of 30 minutes, during that period BTC hit the low of $47,500.</p> <p>This is a classic long squeeze, sudden drop in the price (probably caused intentionally by institutional investors in order to buy more at lower prices) forced traders to close their positions (got liquidated) which creates FUD and make more traders to cash out to USDT (or any other stablecoin).</p> <p><strong>Why I believe today was a bullish sign?</strong> </p> <p>The market recovered really fast and we can see how there is a strong support level at $47,000 - $48000.</p> <p>Also, Coinbase whales are driving the market ,we can see from the following chart how they reacted when the price on Coinbase hit today's lows.</p> <p><a href="https://preview.redd.it/gn3t2yxwv2j61.jpg?width=1280&format=pjpg&auto=webp&s=1565c05ca553ffd8657bd78c7d89f081bdbdf404">Binance vs Coinbase price (BTC)</a></p> <h1>Key Takeaways from today</h1> <p>- Futures affect the price of the market more then in the past due to their popularity.</p> <p>- If you're a HOLDer, stop panic, avoid those dips, you're here for the long term, those dips are just a bumps in the road. </p> <p>- If you consider yourself a trader, stop loss orders are your best friend, they will protect your portfolio.</p> <p>- Be carful if you trading futures, high leverage can be tempting but also can be the death of your portfolio and cause you big losses, trade without leverage until you're really confident in your trading skills and keep the leverage low.</p> <p>- Institutional investors become a thing in the crypto world, watch out for future price manipulations.</p> <p>- Corrections are good and healthy during a big bull run.</p> <p>And most importantly - BTC is strong, Crypto is strong this is just the beginning! </p> <p>​</p> <p><strong>TL
R a long squeeze caused the dip but BTC reacted strong and fast.</strong></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/robinH0D"> /u/robinH0D </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/lpxdfn/explanation_about_todays_dip_and_why_price_action/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/lpxdfn/explanation_about_todays_dip_and_why_price_action/">[comments]</a></span> </td></tr></table>Kind Regards R