Hello Everyone,
During past few days we witnessed a blatant manipulation in the BTC market. Even today Bitcoin reached more than $7420 on Bitfinex exchange. Why only on bitfinex? Because during past few days most of the action has been playin on bitfinex and this exchange seems to be leading the market.
What exactly happened and why the price soared so much for such a short period of time?
Few weeks ago we warned about possible price manipulation on bitfinex led by hidden buy walls placed by whales at $6330 region. This didnt stop for the time being and today those same walls were moved to $7330 region. That caused lots of short positions to be closed to cut their losses which created even more buy pressure on Bitcoin.
As much as 20 000 BTC in short positions were closed (bought on bitfinex).
How to react?
Numerous times we warned that keeping long positions in alts and bitcoin gets riskier the more the price goes higher.
Bitcoin compass team exited almost entirely out of the market between $7200 and $7300 levels. We are 90% flat now.
Possible scenarios for bitcoin?
Now we expect a retracement in price to happen both in alts and on bitcoin. Hence hedging with USD/USDT/TUSD is a viable option for us.
As indicated on our chart the current uptrend should be maximum extended to $7600 regions which at the time of writing we find to be still highly unlikely to happen.
We are also not confident in alts positive movement at the moment as most traders focus primarily on bitcoin and we all know when Bitcoin gets volatile, alts suffer by default. Hence we are very careful at giving alts buy signals, especially in their BTC pairs.
Sitting out in fiat will provide us with the option to engage in the next bigger retracement and buy back our positions a little bit cheaper.
During past few days we witnessed a blatant manipulation in the BTC market. Even today Bitcoin reached more than $7420 on Bitfinex exchange. Why only on bitfinex? Because during past few days most of the action has been playin on bitfinex and this exchange seems to be leading the market.
What exactly happened and why the price soared so much for such a short period of time?
Few weeks ago we warned about possible price manipulation on bitfinex led by hidden buy walls placed by whales at $6330 region. This didnt stop for the time being and today those same walls were moved to $7330 region. That caused lots of short positions to be closed to cut their losses which created even more buy pressure on Bitcoin.
As much as 20 000 BTC in short positions were closed (bought on bitfinex).
How to react?
Numerous times we warned that keeping long positions in alts and bitcoin gets riskier the more the price goes higher.
Bitcoin compass team exited almost entirely out of the market between $7200 and $7300 levels. We are 90% flat now.
Possible scenarios for bitcoin?
Now we expect a retracement in price to happen both in alts and on bitcoin. Hence hedging with USD/USDT/TUSD is a viable option for us.
As indicated on our chart the current uptrend should be maximum extended to $7600 regions which at the time of writing we find to be still highly unlikely to happen.
We are also not confident in alts positive movement at the moment as most traders focus primarily on bitcoin and we all know when Bitcoin gets volatile, alts suffer by default. Hence we are very careful at giving alts buy signals, especially in their BTC pairs.
Sitting out in fiat will provide us with the option to engage in the next bigger retracement and buy back our positions a little bit cheaper.
We provide:
-Charts
-Education
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Binance reg.link: www.binance.com/?ref=36253371
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-Charts
-Education
-VIP trade calls
-AI Trading
Binance reg.link: www.binance.com/?ref=36253371
Join our Discord: discord.gg/nqSJFKc
Make a Tradingview account: tradingview.go2cloud.org/aff_c?offer_id=2&aff_id=13523