[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 99 KB, 639x960, dcclj29-a727c76d-7fff-4646-9595-ab70d276cc03.jpg [View same] [iqdb] [saucenao] [google]
24289457 No.24289457 [Reply] [Original]

who the fuck keeps selling?

>> No.24289489

>>24289457
Panicked fags. Expect much more panic sells when the mutts awake in droves. This will go sub 12k.

>> No.24289522
File: 7 KB, 203x248, 1605411807845.jpg [View same] [iqdb] [saucenao] [google]
24289522

>>24289489

>> No.24289567
File: 223 KB, 1080x1251, 11112433214.jpg [View same] [iqdb] [saucenao] [google]
24289567

>2 double tops near ATH
retards think it's from a tweet and not that BTC and crypto in general is useless. Nice monthly candle too. Surely everything will go to 100K.

>> No.24289618

>>24289457

The amount of leveraged traders at the moment means this is cascading margin calls. Funny really.

>> No.24289660

>>24289457
My bad

>> No.24289811

>>24289457
all the guys who saw sammie's instagram post about buying btc a day ago lol

>> No.24289844

>>24289618
Explain pls

Am brainlet

>> No.24289958

>>24289618
yeah there is plenty of that but who puts up sell walls on these levels we blew through awhile ago

>> No.24290128

>>24289844

Ok so many people borrow money to buy BTC, on Binance this is called Futures trading. People can borrow up to 125x what they have.

So if I have $10k, I can technically borrow $125k to buy BTC.

But Binance isn't going to let you lose $125k of their money, so they set a 'liquidation price', this is the point in which you've lost the equivalent money you put in ($10k in this case)

Margin trading means you can make insane gains if the market goes in your favour, and insane losses if it doesn't.

When markets are going well, people tend to 'long' (borrow money to buy, expecting price increase) and 'short' (borrow BTC to sell, expecting price decreases. You can track which way the crowd is leaning on bybit.com

If the rates are 0.01% that's a notably high leaning to long postioins, -0.01% leaning to short. 0.05% is extremely high. Recently, this has been 0.15%+ (insanely high)

So the vast majority of the market is taking big leverage loans to buy BTC expecting prices to increase.

But then if the market goes unexpectedly bad, people start getting liquidated. So if I took out $10k long position at $19k to buy BTC, and my liquidation price is $18k. Binance takes the BTC I borrowed to buy at $19k, and sells it at $18k to recover their money.

But that might tigger someone elses liquidation price, they get liquidated, their BTC sells and the price drops to $17.9k... which liquidates the next, and the next and the next.

Suddenly, because everyone was so heavily positioned to leveraged long positions, you get a cascading effect with huge sell offs in price.

>> No.24290239
File: 41 KB, 1315x169, Screenshot 2020-11-26 at 11.22.25.png [View same] [iqdb] [saucenao] [google]
24290239

>>24290128

Website is actually bybt.com

During this dip, funding rates are STILL positive. And even higher than ever on Huobi and Bybit, which means someones taken MASSIVE long positions there.

So the market still things we'll go up. but it's even more risky and has the potential for more cascading sell offs.

>> No.24290324

>>24290239
usually it's the opposite: if stablecoin rates go up then it's bullish because people are borrowing them to buy crypto, while if btc's rates go up it's bearish, because people want to short sell it

>> No.24290334

>>24289457
Weak hands

>> No.24290406

>>24290324

It's positive market sentiment if the rates are positive, but the higher it goes the more at risk the trade is. If everyone is positioned in leveraged longs or shorts that's incredibly precarious. That's where we've been for the last week

>> No.24290439

>>24289457
Using the knowledge I learned from /biz/ I have bought high and sold low about 300 times today. Fuck your market.

>> No.24290502

>>24290406
my point is that positive rates on stablecoins and positive rates on other crypto imply 2 completely different market sentiments

>> No.24290520

>>24289457
They should sell, it's the best strategy right now, they need to rebuy it when its cheaper

>> No.24290589

>>24289457
Probably people who bought in the 16k-20k range. They finally got a chance to get out so they sold their stack at breakeven or measly profit.

>> No.24291351

>>24289457
God.