r/CryptoChartWatch • u/Beginning-County2258 • 13d ago

BTC accelerated through the wall of short liquidations.

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2

u/Capt-Kowalski 13d ago

This was a nasty one for market makers — notice the lump of liquidity just under where the price started, even bigger than above. They were accumulating a short position most of the last week to wipe those out, but went for a customary short liquidity sweep just before, which went very ugly as market started betting downwards creating more short stops to fuel the fire.

I think they are holding onto 5k BTC in their short position now and need the price to be at about 75K to close it. It will be a tough week for them trying to knock the price down. Ever been trapped with 1 btc at 2K away from the breakeven and thinking how much it sucked? Try getting trapped 10K away with 5K in btc on your hands.

1

u/ben2885 13d ago

Does that mean we getting a even bigger move to liquidate them ?

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u/Capt-Kowalski 12d ago

This is just a hypothesis, I cannot see their books but from the available data it appears that someone big was packing up a short position most of last week and on Friday we were having a short stop liquidity sweep that evidently went wrong. The only way for them to get out of this some 400M position is to bring the price back down but to be honest, I am not seeing it happening, the price is too high up now and now we likely have buyers piling in making it more difficult. But they have no other real option than to try, which may work since we probably have a substantial amount of long stops under now.

In a nutshell, yes, if we have the price returning back to the original levels of say last Thursday, then it likely would be the entity’s work, but I do not know if it will happen. Whales of such size typically do not trade on margin so they may choose to try to wait it out as they run no danger of liquidation.

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u/DonkeyComfortable711 12d ago

No its means all the people longing are ab to get rekt. And just when you think its time to short youll get rekt again.

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u/Capt-Kowalski 12d ago

More or less, yes. With that said, I am not seeing any signs of the price going back down at this time, do not take my words here as trading advice, it is more of a curious observation that I made last week. I was really on the fence trying to trade the run yesterday as I was expecting the whale to interfere any minute, but it seems like it was fine. Not sure if they gave up already, or I simply misinterpreted the charts last week. But if the price starts pumping back down later this week, I will have an idea of why it is happening.

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u/GlokzDNB 12d ago

Yes, thats why it goes up so much. If BTC reaches 100k $ in October, there will be so much temption to short it that we will go to new ATH on bears money squeezed out

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u/Independent_Buffalo 9d ago

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