Market Makers (called MM) are in the business of building liquidity pools in the form of stop losses.
As people become more long, they place more leveraged positions which have stop losses below them. More and more stop losses are effectively sell orders, which place a supply zone for market makers to exploit via panic selling to push the price even further into a profitable buy zone.
Often times, Market markers will also take advantage of shorts position stop losses which are effectively demand zones waiting to be activated on the way up via adding fuel to the FOMO fire.
In this case, there aren't that many shorts or associated stop losses (buy outs/demand zones) to exploit, and MM tend to go along with the trend, which is an increase in long positions. Therefore, it is likely CHEAPER for MM to go with the trend and slowly push price up and build confidence in the market. This will build more and more long positions for them to exploit during a dump. If they can build up shorts, then we would likely see a nice stop hunt upward to liquidate those shorts on the way up, but ultimately I think we will see a push down to at least 6200 and maybe even 6100
***Any information represented here is my opinion only and not intended to be used for financial gain. None of the information posted here is to be considered financial advice. Information posted here is strictly for entertainment purposes only. Please consult your financial professional before making any kind of investment. Investments can be very risky and any investor should educate themselves before investing by enlisting the help of a licensed financial professional. Past results are not indicative of future results in any construable way.***
As people become more long, they place more leveraged positions which have stop losses below them. More and more stop losses are effectively sell orders, which place a supply zone for market makers to exploit via panic selling to push the price even further into a profitable buy zone.
Often times, Market markers will also take advantage of shorts position stop losses which are effectively demand zones waiting to be activated on the way up via adding fuel to the FOMO fire.
In this case, there aren't that many shorts or associated stop losses (buy outs/demand zones) to exploit, and MM tend to go along with the trend, which is an increase in long positions. Therefore, it is likely CHEAPER for MM to go with the trend and slowly push price up and build confidence in the market. This will build more and more long positions for them to exploit during a dump. If they can build up shorts, then we would likely see a nice stop hunt upward to liquidate those shorts on the way up, but ultimately I think we will see a push down to at least 6200 and maybe even 6100
***Any information represented here is my opinion only and not intended to be used for financial gain. None of the information posted here is to be considered financial advice. Information posted here is strictly for entertainment purposes only. Please consult your financial professional before making any kind of investment. Investments can be very risky and any investor should educate themselves before investing by enlisting the help of a licensed financial professional. Past results are not indicative of future results in any construable way.***
