Many of the top coins are reaching significant liquidity levels. While this isn’t a bearish idea on it’s own, with confluence between many of the top 50 cryptos approaching weekly, or even monthly, liquidity regions there begins to be a strong narrative for price correction. By reaching liquidation levels, the markets can turn previous participants into active participants by pushing them to open new trades. While these liquidity levels will look different for each chart, the significance of them is the same.
I’ll only provide a few quick examples of this, but I encourage you to look at some weekly and monthly charts of coins you are interested in (large cap altcoins, not your shitcoins), and I think you’ll find that they pretty much all approaching a major liquidation region like these charts.
Starting with the example of BTC above, which has just barely tapped above it’s all time high. While it may visit that level again, this is a significant level to liquidate short positions. And below I have examples of ETH and LINK, on the weekly or monthly timeframe and the narrative is the same. While they aren’t at all time high, they are reaching major equilibrium pivot points that would’ve been crucial for many short positions.
Many of the top coins are reaching significant liquidity levels. While this isn’t a bearish idea on it’s own, with confluence between many of the top 50 cryptos approaching weekly, or even monthly, liquidity regions there begins to be a strong narrative for price correction. By reaching liquidation levels, the markets can turn previous participants into active participants by pushing them to open new trades. While these liquidity levels will look different for each chart, the significance of them is the same.
I’ll only provide a few quick examples of this, but I encourage you to look at some weekly and monthly charts of coins you are interested in (large cap altcoins, not your shitcoins), and I think you’ll find that they pretty much all approaching a major liquidation region like these charts.
Starting with the example of BTC above, which has just barely tapped above it’s all time high. While it may visit that level again, this is a significant level to liquidate short positions. And below I have examples of ETH and LINK, on the weekly or monthly timeframe and the narrative is the same. While they aren’t at all time high, they are reaching major equilibrium pivot points that would’ve been crucial for many short positions.