The engineer Iván Paz, CEO of Trading Different, shared with Cointelegraph en Español an analysis regarding the price of Bitcoin. Among other things he referred to a previous indicator on the price of BTC.
“In a market analysis, we had explained the reason for the price to drop to the USD 15,200 area with a probability of 70%,” Paz said.
He then added: “Knowing the Selling Pools area, we understood why the price could drop and after that it would tend to bounce. All it took was bad news, a negative rumor, or a new cleanup in the crypto market, to light the fuse that triggers downward manipulation.”
“As we can see in the following chart, the price went through the Pools, causing all the 5x leveraged longs to lose. After that, the price tends to bounce and look for a new price range”, he specified.
“Liquidation Pools are price zones, which 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 us where the price would be most likely to go, forced by high-frequency bots. These high-frequency bots take advantage of market deficiencies, force the price in one direction, and use Stop Loss zones and Liquidation Points to be able to close their large-volume winning positions,” said the CEO of the firm.
And now what can we expect in the market?
According to Iván Paz, “while the price is lateralizing in a new range, new positions in Shorts begin to enter strongly with very high leverage (25x, 50x and up to 100x). These new positions generate the Liquidation Pools at the top. The more time passes, the more liquidity is added to those pools, and the more likely we are to see a small market rally.”
Was $15,000 the Deep of Crypto Winter?
To that question, Iván Paz replied: “We don’t know, there is still a lot of time until the next Halving Day, and if the market lateralizes in these areas, it will begin to form Pools of the new positions in Long that are opened. And as we know, the pools are the necessary liquidity so that the price can reach a certain price”.
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