The price of bitcoin continues to give what to talk about in recent days. Some wonder if the price of BTC could go as low as $30,000. The engineer Iván Paz, CEO of Trading Different, shared an analysis in this regard with Cointelegraph en Español.
“While the price of Bitcoin is in the range of 38,000 USD, it continues to generate Liquidity Pools below the price. From 34,300 to 27,000 there is an area heavily loaded with Stop Loss and Liquidation Points that could generate a cascading effect when the price enters those levels, and bring the price down sharply,” said Iván Paz.
He then explained that “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 deficiencies, force the price in one direction and use the Stop Loss zones and Liquidation Points to be able to close their large-volume winning positions”, Iván Paz pointed out.
“When the price is forced and liquidates traders’ positions, there is usually a quick rebound in price. Based on this, we could be facing a bearish continuation scenario but with a potential rebound point, where some will take the opportunity to make new purchases and others will simply reduce the risk by staying out of the market”, said Iván Paz.
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