As we approach the next Halving day, the price of Bitcoin stays in range, not seeking new highs or lows. This type of scenario is normal while large investors seek to accumulate Bitcoins for the next bull run.

But… what does the price do during these lateralizations?

The price seeks market liquidity, repeating the liquidation cycles over and over again. Through these cycles, money flows from weak hands to strong hands, flows from retail operators to institutional funds.

These cycles, where they liquidate all the leveraged positions, can be seen below.

Figure 1

The Liquidation Heatmap graph shows us the Liquidation Pools, which indicate, through a mathematical algorithm, where all traders who enter the market over-leveraged could lose. This algorithm, developed by the Trading Different team, shows us where the price would be most likely to go, forced by high-frequency bots. These high-frequency bots take advantage of market failures, force the price in one direction, and use Stop Loss zones and Liquidation Points to close out their large-volume winning positions.

In the area of ​​USD 26,400 we can see a new Liquidation Pool, which the price will look for in the coming days to get the short 100x and 50x leveraged out of the game.

In order to observe how the bots operate in real time, it is important to have the High Frequency graph (figure 2). It shows the Buy and Sell trades that enter the market, at the millisecond level. In this way, the algorithm identifies the bots and translates it into an HF indicator.

In the last hours, the High Frequency bots have been operating in Sell, executing more than 50 trades per second. In order to see an upside manipulation and liquidate those Pools at $26,400, we will need to see large Buy Orders at millisecond speeds executed by the bots.

Figure 2

AUTHOR(S)

RECENT ARTICLES

The price of Ethereum has been in the range of 1880 USD for days, along with the lateralization of Bitcoin. The cryptos with the largest capitalization in the market are waiting for the reaction of their older brother.

For this, it is good to know the possible areas of interest and rebound for ETH price. In figure 1, we see the Liquidation Heatmap graph for ETH in 1-Day candlesticks, which shows us the different Liquidation Pools that the price was liquidating and those that are pending liquidation.

Figure 1

The Liquidation Heatmap graph shows us the Liquidation Pools, which indicate, through a mathematical algorithm, where all traders who enter the market over-leveraged could lose. This algorithm, developed by the Trading Different team, shows us where the price would be most likely to go, forced by high-frequency bots. These high-frequency bots take advantage of market failures, force the price in one direction, and use Stop Loss zones and Liquidation Points to close out their large-volume winning positions.

If we look at July 2nd, we see that the price reached USD 1975, liquidating part of that Pool, but was unable to do so completely. When we see this type of pattern, we interpret that real Spot Sale is entering and does not allow high-frequency bots to manipulate the price to finish absorbing that liquidity.

Currently, the remainder of that Pool was joined with the Pool above, forming a single liquidity block up to 2100 USD. This liquidity is increasing as the days go by, and it will serve as fuel to see ETH go back above USD 2,000, but we will need BTC to accompany it upwards to make it possible.

At the moment, the high-frequency bots in Bitcoin continue to operate bullisj. In order to observe how the bots operate in real time, it is important to have the High Frequency graph (figure 2). It shows the Buy and Sell trades that enter the market, at the millisecond level. In this way, the algorithm identifies the bots and translates it into an HF indicator.

Figure 2

Try for Free the Liquidation Heatmap and the High Frecuency Graph here.

AUTHOR(S)

RECENT ARTICLES

The price of Bitcoin currently remains in the range of 30,500 USD. It has had a good recovery, after visiting the area of ​​24,800 USD where it liquidated all long positions.

From those liquidations, the price began to rise strongly, liquidating each Pool that we see in the Liquidation Heatmap graph.

The last important liquidation occurred when the price reached USD 31,400 (graph 1) where it took out of the game all the positions that had been looking for shorts in the market. After that the price began to lateralize.

The Liquidation Heatmap graph shows us the Liquidation Pools, which indicate, through a mathematical algorithm, where all traders who enter the market over-leveraged could lose. This algorithm, developed by the Trading Different team, shows us where the price would be most likely to go, forced by high-frequency bots. These high-frequency bots take advantage of market failures, force the price in one direction, and use Stop Loss zones and Liquidation Points to close out their large-volume winning positions.

Graph 1

In order to observe how high frequency bots operate in real time, it is important to have the High Frequency graph (graph 2). It shows the Buy and Sell trades that enter the market, at millisecond level. In this way, the algorithm identifies the bots and translates it into a HF indicator.

Graph 2

What can we expect for Bitcoin?

Since it was in range, the price has had several rejections in the area of ​​30,900 USD. As time goes by, that zone fills up more and more with liquidity, forming a block of Pools from 31,000 to 31,800 USD. It is not yet enough accumulated liquidity to break up, but as days go by and the price remains in a range, it will increase and these Pools will be the vehicle to seek new highs.

So, in the short term, we could expect long positions to be taken out of the market, that is to liquidate the Pools that are below USD 29,800. In this case we cannot expect a complete liquidation of all the Pools at the bottom, because the main trend is bullish and they will manipulate the price as far as they can, probably liquidating 50x leveraged.

Try for Free the Liquidation Heatmap and the High Frecuency Graph here.

AUTHOR(S)

RECENT ARTICLES