The engineer Iván Paz, CEO of Trading Different, shared with Cointelegraph en Español an analysis regarding the price of Bitcoin.
“After a fairly hectic few weeks for Bitcoin, the price of BTC reached the expected levels, and then began to determine a new trading range.
During these new price levels between $28,000 and $31,000, the liquidation cycle returned to its normal rhythm, taking out of play both longs and shorts who entered the market over leverage. In other words, while the price oscillates in a range, it forms Liquidity Pools above and below, which serve as a magnet for the price (figure 1)”, he explained.
Figure 1
At the time of writing this review, the price was around $31,600. “It has risen to liquidate all short leveraged, specifically those over leveraged at 25x (figure 2)”, said the CEO of Trading Different.
figure 2
How far can we expect the price to go?
“If we analyze with the Liquidity Pools tool, and we activate where the areas are located where the leveraged will lose 10x in short, we can see that the price could reach 33,200 USD (figure 3)”, said Iván Paz.
figure 3
“After liquidating all the shorts in the market, we could expect a rebound to the downside, to seek stability in a new price range and start the liquidation cycle again”, he added later.
“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 us 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,” he concluded.
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