It seems like there is quite a bit of liquidation of shorts around 333-34K at the moment. It seems like the easiest liquidity to hunt resides here, before determining the next move of the market.
2 factors analyzed:
1. Bitmex funding has nearly zero'd out. This means there is a closer balance between short and long positions (market was very leveraged long, which was cleared).
2. Liquidity bands are tight above current level on a 4 hour timeframe (which it seems the market has been respecting). I think the price will seek this liquidity in a fast stroke before efficient dynamics take hold again.
Spot markets are less liquid here. I suspect there is spot profit-taking to accompany Grayscale. So spot activity may be influenced strongly by leverage on perp swaps.
Looking at Bitmex liquidity bands here. A swing failure of the low from a week back would be a signal of weakness favoring a move to liquidity.
2 factors analyzed:
1. Bitmex funding has nearly zero'd out. This means there is a closer balance between short and long positions (market was very leveraged long, which was cleared).
2. Liquidity bands are tight above current level on a 4 hour timeframe (which it seems the market has been respecting). I think the price will seek this liquidity in a fast stroke before efficient dynamics take hold again.
Spot markets are less liquid here. I suspect there is spot profit-taking to accompany Grayscale. So spot activity may be influenced strongly by leverage on perp swaps.
Looking at Bitmex liquidity bands here. A swing failure of the low from a week back would be a signal of weakness favoring a move to liquidity.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.