Why Bitcoin is Rising, Understanding the Real Logic
Most of the current bearish views are conspiracy theories, claiming that the manipulators push it up and then bring down a big red candle, leading to a double explosion for both long and short positions. I can only say this is definitely a conspiracy theory. First, ask yourself a question: Is there really a manipulator for Bitcoin? In fact, there isn't; at most, only a small group of people can coordinate to manipulate it, but their impact on the entire market won't be significant. Because based on human nature, everyone's view of Bitcoin is different, so it's impossible for Bitcoin to have a strong manipulation like VC coins.
Secondly, some people use heat maps to predict price fluctuations, which is also a huge mistake. First, heat maps change in real-time, and your reference is a dynamic thing. Do you think that's useful? Secondly, if the price of something could be predicted based on heat maps, it would be utterly ridiculous because the funds from contracts account for less than 1% of the entire BTC market value. Using the fluctuations of this small amount of funds to predict the entire market's fluctuations is a case of survivor bias. It's purely nonsense! Groundless talk.
Next, let's talk about why it will rise: the cycle.
The logic is simple, but few people understand it. Even fewer can persist once they understand.
Let me give you an example of why Bitcoin can consistently break through resistance levels.
First, after blowing up the short positions, they switch to spot trading to continue driving the price higher.
Second, although many people are going long from below, based on human nature, most of those who make money from long positions will choose to buy in. This creates a positive cycle because the funds driving the price up also know that even if they allow the long position holders to profit, it doesn't matter. After they close their positions, there are only two choices: first, go short, and the final outcome is being blown up; second, go long, take profits, and buy in spot. This still raises the spot price, so no one wants the price to drop.