Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

In the next few days the people who took in loans to buy BTC at 18-20 k will start to sell Sad

We have seen LOTS of shorts squeezed on this rise. When is the last time you remember seeing some cataclysmic longs squeezed to implode the price? It hasn't happened since the price was in the $400-800 range probably. Everything is cyclical. The draught of long squeezes has to invert at some point.

this is because with rising BTC price the value of your collateral for your leverages increases too - atleast this is my view; i usually dont use leverage.

Well, it's mostly because there are people who own like 200,000 coins and can't sell them without imploding the market, so they're essentially illiquid, toxic assets. On the other hand, they can use their toxic assets as margin collateral to squeeze shorts and also to do pump and dumps. If you live in a civilization that facilitates people to leverage toxic assets and create a toxic asset at 3x the price of a non-leveraged one, take a good look around because all this shit is going to be crumbling down on top of you soon and that applies to both bitcoin + Wall Street.

Every time the market dumps, it also purges those giant holders from the market. This distributes coins out to more holders which strengthens the market.

Really? You mean besides WuVer? I can't help but think these are recent bag holders dumping, not HODLers!

Nope recent buyers don't have enough coins to move the market like this. It is clearly early adopters cashing out large amounts of coins.