Why is there talk of a possible new low in the price of bitcoin?


Engineer Iván Paz, CEO of Trading Different, shared with Cointelegraph en Español an analysis of bitcoin price. Among other things, he cited versions that said the price BTC It hasn’t bottomed out yet.

“You have definitely seen many market analysts convinced that Bitcoin has not bottomed yet and are predicting new lows in the areas of $12,000, $10,000 and up to $6,000. But what are the bases of that analysis?” asked Iván Paz.

He then asked another important question: Can we really rely on the lines of the graph? Can we make investment decisions based on perceived historical support? So how would they explain this new $18,000 in support that never existed?

“These questions will make them realize that there is too much uncertainty for us to risk our capital.” But this is typical of financial markets and much more so of markets cryptocurrencies. There is nothing guaranteed, no investment, no market movement, absolutely none of it has 100% certainty,” he stated emphatically.

“That’s why the best investment and trading strategies are based on real probabilities, that is, measured and studied based on significant statistical samples.” This is the work that every investment professional does before entering the market,” he added.

And then he declared: “To Trade We perform different types of work based on quantitative trading, both for creating our own indicators and for compiling trading strategies. Each of our trading systems is tested and evaluated against mathematical and probabilistic metrics.

“Based on this, we can explain in fundamentals why there is a 70% chance that the price will reach a new low, but it will not be at $12,000, much less at $6,000,” he clarified.

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In the chart below, you can see how the Pools at the bottom of the price are forming: Liquidation Zones.

“In this case, we are talking about all the 5x leverages that are long positions in the market, where there is accumulated more than 3 billion. USD that could be liquidated. This is enough liquidity to complete the accumulation phase of large operators in the medium term (months), confirmed Iván Paz.

“Pools make up the settlement area up to about $15,200. Therefore, in the event of a new decline, this would be the area for a possible pause and price bounce. This does not mean that the carrier should go down or that the price will go down one way or the other, remember we are only talking about a 70% chance. There’s a 30% chance it won’t happen (and it might). This type of information, which is based on statistics, must be combined with the trading systems of each operator,” noted the head of Trading Different.

“In short, we now really understand why the price might fall, how likely it is, and how far it might go, based on the real fundamentals of market manipulation and hard liquidity data,” he said.

Finally, he reminded that “liquidity funds are price zones that, according to a mathematical algorithm, indicate where all traders who enter the market with excess leverage can lose. This algorithm, developed by the Trading Different team, shows us where the price would most likely deviate if forced by high frequency robots. These high frequency robots take advantage of market failures, push the price in one direction and use Stop Loss zones and liquidation points to close out their large winning positions.

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Disclaimer: The information and/or opinions contained in this article do not necessarily reflect the views or editorial line of Cointelegraph. The information provided here should not be considered financial advice or investment recommendation. Any investment and commercial move involves risk, and each person should do their due diligence before making an investment decision.

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Source: es.cointelegraph.com

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