The price of bitcoin continues to give what to talk about in recent days, especially with the rise of last weekend. The engineer Iván Paz, CEO of Trading Different, shared an analysis in this regard with Cointelegraph en Español.
“The price of Bitcoin has reached 47,000 USD. During the rise of the last few days, it has been liquidating all the short leveraged in the market”, explained Iván Paz.
“In fig. 1 we can see the Liquidity Pools that represent the 50x, 25x and 10x leveraged short”, he added.
“Next, in fig. 2 we can see the Liquidity Pools that represent those leveraged at 5x in short. The market has been playing tricks on all those who bet on the downside in advance. This is not new in the crypto market, since we are aware of the existing manipulation”, commented Iván Paz.
“A very important detail to keep in mind is that, during the rise, long positions, also leveraged, have been entering the market, generating Liquidity Pools below 44,000 USD (fig. 1), which is a potential factor to expect a wild pullback of more than 9%,” he added.
“Liquidity Pools are price zones, which indicate, through a mathematical algorithm, where all traders who enter the market over-leveraged will lose. This algorithm developed by the Trading Different team shows us where the price is most likely to 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 large volume winning positions”, specified the CEO of Trading Different.
“For those who want to know more about this tool, they can register for free on our website and try it for three days,” he concluded.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
It may interest you
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.