Bitcoin will most likely take the $300bn worth of liquidity which is in the region of 26 to 26.2K. This was obvious that correction was due and I discussed in one of my post that any time bitcoin can dump and it happened. I predicted which came true and we may see some more dip to take the liquidity.

We all know that market has high volume and the market manipulation in high volume is too difficult. But still there are organizations, banks, other whales who always try to grab the liquidity. They try to liquidate both the long and short positions so that to clear the market trend.

Those people who were long from 27K are all liquidated and those who are now short from 26K will be surprised very soon. This the game of whales and the rich people who always try to grab the liquidity and confirm their position. Always keep in mind that when Bitcoin is dumped something big is happening.

This has two scenario one that any insider news is leaked which is obviously only for the whales and later we came to hear about that news. Another possibility for the market dump is that big organizations wants to invest their amount which firstly take others holding and buy at lower price.

WHAT TO DO IN THIS SCENARIO?

First of all if your are a day trader you must adopt a stoploss strategy. Trading without a stoploss is wasting your money and which is never recoverable. Another thing which I noted about the market trend that whenever the market price gets stable and keep on touching support and the resistance again and again there will be short breakout either of the side.

The same was the case here when the price of the bitcoin remains for many days to the range of $27200 to 28200. Also the impact of FED news and other factors involved forced the market to go down. Also there is which I stated above that liquidity are taken for the better retracement.

In this scenario, if you are a long term investors then its not to worry and hold your coin because holding for long term is always a win situation. But if you are trader then its time to invest your next layer at the current price. As we see RSI indicator indicates that it is over sold position.

Whenever RSI goes down below 20 then its more probably to go upward very quickly. The same is the case here where the RSI indicates buying signal and also 26200 is the good support as well. But if it goes down continuously then the next support is $25K. If unfortunately the dump continues then the next liquidity is around $22K .

But all these are likely not to happen and we will see a good comeback from this level. If we see long term chart we have clear indicator of bull run. Therefore there is more chance of going up from this position but please do your own research. I am not financial advisor just predicted and shared my thoughts of view.

What do you people think will there be good comeback from this price? Do you think grabbing liquidity will trick the investors to sell their holdings? Will be glad to see your answer in the comment below.

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