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After three days of sustained recovery, Bitcoin and Ethereum were again under strong bearish pressure as Ethereum reached its recent low of $1700. For Bitcoin, the asset was hovering at just over $30,000 at the time of writing as industry fear gripped a new low. While the markets slowly turned to the long-term bearish, the direction was still unclear in the short term.

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Liquidation map for Bitcoin, Ethereum

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Analyst Biraaj T looks at the active liquidation chart to understand the current expectations of traders to identify bearish zones or possible recovery going forward. The analyst states that while the bears are currently at an advantage, the price of Bitcoin and Ethereum remains in a range that could potentially be at a bottom before the price rises again. Now, according to the data, while the probability is decreasing with each passing day, more liquidity emerges with higher prices.

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In times like these, liquidity is of great importance. Because price action follows capital pools. Therefore, when orders are set in either direction, up or down, the price approaches this value over time. As the price approaches these capital pools, traders often add more margin or liquidate their positions.

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Is upward movement likely?

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Now, when analyzing the attached chart for Bitcoin and Ethereum, it was found that Ethereum has a strong capital pool range at $2,200. SimilarlyCryptocoin. com, between $1700-1800, ETH also had a strong liquidity zone. The conclusion that can be drawn from this narrative is that Ethereum could potentially reverse this range as the price action will drift towards the liquidity phase. At the time of writing, the 3-month status of Bitcoin Futures had gone through a strong reset on Binance and Deribit. This finding means that the gap between spot and futures has narrowed.

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However, Bitcoin is playing with fire right now as the weekly candle closes just above the demand zone. The $28.130-$30.130 support range has been held since early 2021. Failure to maintain this level until next week may open the doors to bearish action and the bulls may suffer defeat at this point.

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Currently, Bitcoin is bound to close the weekly candle above $30,130 in the next 24 hours, according to analyst Biraaj. The next candle should not retest the aforementioned demand zone. As we enter the third quarter of 2021, things may start to look brisk for the market. But time is running out and the market needs to react quickly.

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Disclaimer: Cryptocoin. The articles and articles on com do not constitute investment advice. Cryptocoin. com does not recommend buying or selling any cryptocurrencies or digital assets or Cryptocoins. com is not an investment advisor. Hence Cryptocoin. com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.

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Michael Lewis

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