Not only from the liquidity standpoint, but also from the ECONOMICAL standpoint.
Read this thread and understand..
The Dollar Index...
So, from the economical standpoint..
BULLISH Dollar = Less Dollar supply circulating in the economy which is BAD for the economy.
BEARISH Dollar = More Dollar supply circulating in the economy which means people have more $ which is GOOD.
At the moment, we're witnessing Bitcoin bottom out in perfect sync with the Dollar.
I'm not saying BTC will make a new All Time High, but this sure does set the stage for a Low-Risk environment for BTC to move up to 26K.
Take a look at the dollar chart.
Another instrument that is a GREAT indicator of #Bitcoin MACRO trends is Silver.
I was inspired by @i_am_jackis to adopt this MACRO multi-market analysis style.
At the moment, we're seeing Silver Bottom out in PERFECT SYNC with #Bitcoin
Coincidence? I don't think so.
US 10 Year Bond Yields..
This is a FANTASTIC Indicator of the Equities Market
Bond Yields going down means HIGHER Prices on Stocks because investors want to move their money out of Low-Yielding bonds to Higher-Yielding stocks
This transition sets the stage for a BULLISH Market
#SPX500 With S&P Finally clearing out the MAIN Sellside Liquidity target, we're now entering a BUY PROGRAM.
Coincidence? I don't think so.
Buying #Bitcoin now is A SMART & CALCULATED DECISION.
USDT Dominance + USDC Dominance.
What does this chart mean? This shows how much of the money circulating in crypto is held in STABLECOINS vs the TOTAL Money Circulating in Crypto.
What do the moves on this chart mean for Bitcoin? Check the next page.
A move down on STABLECOIN Dominance means investors are using up their stablecoins to buy up other assets, which typically results in Bullishness for the rest of the Crypto Market.
I rest my case.
To conclude, I don't see a scenario where #Bitcoin doesn't move up to 26K.
To begin.. Let's start by understanding what we're seeing on the monthly chart
Currently, on the Monthly Timeframe, I'd argue most people are fighting the trend; trying to call the top.
Thus, the liquidity rests on the Buyside
THREAD 📜
The weekly chart 💧
It seems as if most of Dumb Money is positioned long, and are going to be liquidated at what I marked "Sellside Liquidity"
Therefore we do not consider Buyside until that has been purged.
The Daily Chart..
Sentiment is shifting bearish, all that's left is for Smart Money to realize their positions at the Sellside Liquidity, and I'd say we're ready to target Buyside.
📕 Chapters:
- I, What is Liquidity & Why Does It Matter?
- II, The Core Principal of Liquidity
- III, Liquidity & Human Emotions
- IV, The Technicals of Liquidity
- V, Time, Price & Liquidity
- VI, Trading with the Smart Money
- I, What is Liquidity & Why Does It Matter?
- II, The Core Principal of Liquidity
According to a study conducted by the National Futures Association in the United States, 97% of traders end each trading day in a net-loss after commissions.
Other studies point towards the 95% and 90% figures.
We can safely say ~90%-97% of traders lose money.
(2/x)
There is an experiment that you can conduct.
Open & close positions on absolute random.
Randomly select long/short
Randomly open/close.
Across enough trades, you should end near breakeven, after commissions.
This is because long/short and win/loss is binary.
It is the approach that will get you thinking that random equal highs have liquidity.
A thread.. (1/x)
The liquidity you're after rests where stoplosses are concentrated.
To understand where that is, you must think like the vast majority.
Generally, traders will set stoplosses at a place which fits the criteria I'm about to provide you with.
(2/x)
Traders will set stoplosses at places which: 1) Satisfy their greed.
Most traders don't feel content with 1R, 2R trades.. They will look to set tight stops and wide targets which satisfy their greed.
2) Make sense from the lense of pattern recognition.
📕 Chapters:
- I, What is Liquidity & Why Does It Matter?
- II, The Core Principal of Liquidity
- III, Liquidity & Human Emotions
- IV, The Technicals of Liquidity
- V, Time, Price & Liquidity
🔥- VI, Trading with the Smart Money
Chapter I - What is Liquidity & Why Does It Matter?
Pages 1 -> 4
Chapter I - What is Liquidity & Why Does It Matter?
Pages 5 -> 6