$The price of Bitcoin moves cyclically: rapid rises are followed by periods of stagnation. Recently, $BTC it rose from 70k to 99k in just a few weeks, but has already been stagnating at that level without breaking 100k for just as long. At first glance, this seems strange 🤔, but it is a natural process — liquidity gathering.
What is liquidity gathering?
The market operates through the redistribution of capital. For large players to move the price, they need counterparties — those willing to buy or sell an asset on their terms. This is why the price periodically 'gets stuck': the market creates an illusion of stability to gather liquidity.
Example:
1. Longs are traders who open positions to buy, expecting a rise 📈. They are usually abundant at strong support levels (for example, 75k, 85k).
2. Shorts are those who sell an asset, expecting a pullback 📉. The 100k level is a psychological barrier where such traders traditionally increase.
To move higher, the market needs:
• Shake out the longs: knock them out by stop losses, creating downward movement.
• Force short sellers to close their positions: breaking 100k, causing their losses and a sharp demand for buying.
What is happening now?
Bitcoin has been 'rolling' in the range of 95k-99k for several weeks. This is not a coincidence. Such consolidation allows the market to:
• Collect liquidity from both sides ⚖️.
• Prepare for the next impulse 🚀.
If a lot of shorts are accumulated at the 100k level, breaking through this mark could lead to a rapid rise. Short sellers will start to close their positions at a loss, and their forced buying will provide additional fuel for growth.
How to trade in such a situation?
1. Don't fall into traps. Psychological levels, such as 100k, are often used to gather liquidity. Don't rush to open positions if the market is clearly luring traders.
2. Focus on strategy. Trading without a clear plan often leads to emotional decisions and losses. Consider the possibility of false breakouts and sudden reversals.
3. Watch the volumes and accumulation zone. An increase in volumes near key levels (for example, 95k-100k) can signal an imminent exit from the range. 📊
4. Do not trade against the trend. If the price breaks 100k, try to enter with minimal risks on retests of levels.
Conclusion: understanding instead of emotions
The market loves to manipulate the crowd, creating movement against the majority. Our task as traders is not to succumb to panic or euphoria, but to analyze what is happening and trade consciously.
Don't become part of the statistics, trade wisely and benefit from the actions of large players! 💡$BTC