For anyone wondering "WTF Just Happened?!"
Here's what I'm looking at:
[THREAD]
Here's what I'm looking at:
[THREAD]
First off, bull market corrections of 25-30% are completely normal and expected. All it takes is a look at 2017 for multiple such instances.
1.
1.
In what was already somewhat of an overheated market with profit taking occurring throughout, throw in the Molotov cocktail that is Elon, and things got really interesting as speculators without conviction start selling at a loss.
Classic energy FUD.
2.
Classic energy FUD.
2.
SOPR, the spent output profit/loss ratio, shows UTXOs being moved on average at a loss for the first time since September.
But why did $BTC nuke? A pullback is understandable, but 30K?? What happened?
It's all about the leverage.
3.
But why did $BTC nuke? A pullback is understandable, but 30K?? What happened?
It's all about the leverage.
3.
Following the 64k ATH the market started to sell off. During the sell offs funding flips negative, but each time traders quickly leveraged back up.
Leverage never was flushed, but rather underwater longs kept adding to their positions, as shown by the funding rates.
4.
Leverage never was flushed, but rather underwater longs kept adding to their positions, as shown by the funding rates.
4.
Opportunistic whales saw this, & deposited to exchanges & began relentlessly selling spot, knowing the the size of underwater long positions.
Elevated $BTC inflows to exchanges shortly before the major liquidations showed this developing.
5.
Elevated $BTC inflows to exchanges shortly before the major liquidations showed this developing.
5.
Whale selling at last got the leveraged traders liquidated, as the wick down to 30k shows.
Mission accomplished, longs liquidated, and they filled their bags in the process.
Take a look at $BTC transfer volume from exchanges after the liquidations.
6.
Mission accomplished, longs liquidated, and they filled their bags in the process.
Take a look at $BTC transfer volume from exchanges after the liquidations.
6.
Futures Open Interest fell from ~$27 Billion at the 64k ATH to ~$12 billion currently.
Leverage: Flushed.
7.
Leverage: Flushed.
7.
TLDR:
This is nothing& should be treated as a huge buying opportunity. The macro landscape is unchanged.
Shift your focus to what is actually taking place: the monetization process of a completely new, absolutely scarce, digital bearer asset.
End/
This is nothing& should be treated as a huge buying opportunity. The macro landscape is unchanged.
Shift your focus to what is actually taking place: the monetization process of a completely new, absolutely scarce, digital bearer asset.
End/
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