Bitcoin price on a downfall despite increasing applications for the Bitcoin-Spot-ETF: View of the current market situation

Bitcoin price on a downfall despite increasing applications for the Bitcoin-Spot-ETF: View of the current market situation

The Bitcoin Prize has dropped last week, although more companies have applied for the Bitcoin Spot ETF. The market mood is still positive, but the price goes down.

Let's take a closer look at the Bitcoin Prize this week.

previous Bitcoin price analysis
Last week, the aggregated open interest of the Bitcoin options from Deribit for June 30 showed that Bitcoin would have an easy way to $ 41,000. So we predicted that Bitcoin could have an exciting week in early July. However, Bitcoin was in a consolidation trend throughout the week.

consolidation trends are usually artificially generated by marketmakers (MMS) in order to withdraw liquidity to retailers before the actual movement takes place up or down.

A look at the Coing Lass shows that in the past two weeks shorts worth 616.89 million $ 6 were liquidated to eight of the largest crypto bonds. If you compare the Buy Side Liquidity (BSL) hunt with the Sell Side Liquidity (SSL) hunt, you can see that the MMS only hunted a small part of the SSL.

This is an indication of what could still come. There are two possible scenarios:

Theory 1: Bärisch
If the MMS take out the BSL, it means that you may plan to press the Bitcoin price and not want to allow the empty sellers benefit from the upcoming crash.

This theory is further underpinned by the significantly low number of empty sales in the graphic. If the MMS press the price down, you will pick up the sales stops for the long-oriented dealers.

Theory 2: Bullisch
It could be a wrong movement to trick the dealers. Traders analyze charts in the same way. Most dealers probably think that the BSL is a psychological resistance. Most of them have analyzed price development and can recognize the aggressive liquidity hunting that takes place. In your minds you think that theory 1 is in the game.

But in reality the MMS want to drive the price up. By pretending the dealers that they want to press the price (by clearing up and triggering the BSL), they cause many dealers to enter long positions.

In the next few days there will be an aggressive downward movement that wipes out all SSL and dissolves the long positions of the dealers. The movement also triggers all Buy limit orders from the long-oriented dealers. Shortly afterwards the MMS change the trend aggressively and drive the price up.

Only the last group of dealers who set their buy limit orders at the SSL and waited patiently will be made.

It is important to note that the information in this article is based on current events, technical charts, corporate news and the opinion of the author. There may be errors and you should not make your investment decisions based solely on the basis of this article.