The engineer Iván Paz, CEO of Trading Different, shared with Cointelegraph en Español an analysis regarding the price of Bitcoin. Among others, he stated that this recovery of the price of Bitcoin should not be trusted
“Bitcoin price has dropped to the price levels we projected last week, reaching the bottom of the Liquidity Pool and rebounding afterwards (figure 1).
Over $30 million in leveraged long positions were liquidated throughout the crash. Once the price has swept all the liquidity pools, the high-frequency bots stop forcing the price, and that is when we can see an upward pullback and then begin to lateralize and look for stability in new trading prices, “he said.
(Figure 1)
“But this does not end here, the game starts again and the price has new search targets. During the fall, new Liquidity Pools were generated from all the leveraged shorts that entered the market. The high-frequency bots, after having worked on forcing the price down to take out the longers, change their strategy and start to force the price up to make all the shorters lose,” he added.
Later, he specified: “That is why we are currently seeing a recovery in the price of Bitcoin (figure 2). It’s the same market cycle repeating itself over and over again.”
(figure 2)
What can we expect after this?
According to Iván Paz, after having liquidated longs and shorts, the price will need to lateralize to form new Liquidity Pools.
“Therefore, now we just have to wait, give the market time to form new Pools, assess where there is more liquidity and try to interpret the direction that the high-frequency bots will take in their next move”, he commented.
“Liquidity Pools are price zones that indicate, through a mathematical algorithm, where all traders who enter the market over-leveraged could lose. This algorithm developed by the Trading Different team shows where the price would most likely go, forced by high-frequency bots. These high-frequency bots take advantage of market failures, force the price in one direction and use Stop Loss zones and Liquidation Points to be able to close their high volume winning positions. For those who want to know more about this tool, they can register for free on the official site and try it for three days”, concluded Iván Paz.
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