Bitcoin's stuck in a weird cycle 😕, with sharp impulses failing and the price reacting strangely to good news. Here's what's going on:
- Market manipulation: Large players trigger short squeezes, pushing the price up, then dump their coins, causing a sharp reversal.
- Liquidity crunch: Low liquidity means even small trades can move the price significantly.
- Derivatives market: High open interest in futures and leverage make the market vulnerable to liquidations.
The Fed's liquidity isn't reaching crypto, and inflows into BTC ETFs are just redistributing existing capital. Bitcoin's squeezed between support and resistance, with demand below and selling pressure above.
Current state:
- No sustained growth without stable spot demand and decreased selling pressure
- Market's in a cleansing phase, removing excess leverage and weak participants
- Large players will keep exploiting liquidity shortages until the structure changes
What's your take on BTC's next move?
