Exchange get Btc, liquidating leveraged orders
As of today they have achieved 2.38 Billion by liquidating long positions due to the decrease in the price of bitcoin
As we see in the following graph, bitcoin stocks on the exchanges have been at a minimum since the beginning of the year and had already had very low values since the beginning of November last year.
And the price since November of last year has not stopped rising except for corrections for a short time.
Therefore, the rise in the price of bitcoin has not caused investors to sell their bitcoin, on the contrary, the rise caused a greater demand for bitcoin. The exchanges are left with low Bitcoin stocks.
By law, supply and demand, in perfect conditions, at a higher price, more people sell, which in the long run lowers the price in search of a new equilibrium.
As exchanges remain with minimal stocks, they cannot push down the price, unless a large investor in bitcoin sells their bitcoin and exchanges get bitcoin, through the entire process of liquidation of positions leveraged in longs.
What we saw yesterday may be chance or a combined maneuver between exchange and large investors to get more Bitcoin.
Now if there is still interest in buying Bitcoin by institutional investors, large companies, mutual funds will buy in the decline and the recovery of the price of bitcoin will be very fast.
What do you think?
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The alcoins market is very dependent on the price of Bitcoin, when Bitcoins goes up the alcoins go up more, but also in the other sense, so I suggest that you periodically review a Bitcoin and use stop loss and move it when they are already in profit. Do not let a profit become a loss.
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