What do my charts say? We are getting close to an area where BTC is finding some strength. This does not mean we are at bottom, but it could act like 6K acted and we may stay in this 2800 to 3K range for a bit (or whatever range it falls to) and we may find opportunities to trade BTC and alts for some profit. As per the chart, we have some bull div stacking up in presence of decreasing . This is occurring in a very fractal-type manner. I will keep watching for the right kind of and other indicators for a possible bounce up and I will look for an entry over the next few days. Could be as soon as I see a pull back.
This may be a temporary entry where I buy in and raise stops once in profit, but it may also be a period of weeks or even months where we stay range bound before we either fall or rise. Of course, there is always that chance we have hit bottom around 3K, so I will be looking for entries with that support in mind. We have to remember that the MM know that 3000 has been parroted by every known influencer in the space, which means that there will be a ton of longs sitting in the order book.
This brings me to the big banker games. The MM can always take advantage of this and slam the price down to eat up that liquidity pool. What is interesting is that IG Client sentiment (which can be found on DailyFX- an established and trusted site which gathers open interest data for mostly FX, indices, and some ) estimates that retail buyers are net long 72% while they are net short 28%. While this seems significantly long, their data suggests that the net long position has been steadily decreasing all year and is now it's lowest since November 28 AND is significantly lower than it's been most of this year. Normally in this scenario with other assets, they take a contrarian view and feel that the MM will slam the price down to tap into that liquidity. However, the anomaly here is that traders are LESS net long than they were yesterday and even lesser so than last week. Due to the fact that they are a-typically of the opinion that price could reverse in this area despite the typical MM liquidity games.
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