On May 20th, Bitcoin long position with 40x leverage opened a position of $568 million. The well-known trader James Wynn, who has profited $38.78 million from contracts in the past two months, shared in a post, "Since Bitcoin reached a local low of $74,000, the price has been running in a channel, only touching the bottom support twice. I predicted this 'breakthrough' on Sunday, but it turned out to be a fake breakthrough manipulated by market makers who suppressed the price to liquidate those FOMO long positions.
I focus on the liquidation heatmap, and from the chart, further downward movement doesn't make much sense. By pressing down to $102,200, they have achieved their liquidation purpose. Moreover, $100,000 is now an extremely strong psychological support level. I know there are definitely large limit buy orders waiting to support at prices like $99k, $98k, and $97k. I'm uncertain if the whales still have enough firepower to drive the price lower, and it feels like they are somewhat exhausted.
When I saw this, I decided to add positions and go all out. At that time, the hourly chart showed bulls starting to engulf the previous candle, and many 'weak hands' had been washed out. From the weekly perspective, MACD has also turned bullish for the first time since November/December last year. You're telling me we're going to reverse and break down at this point? I'm more inclined to believe this is just short-term noise and volatility, a brewing stage before Bitcoin's big surge.
I believe by next weekend, we'll see Bitcoin trading around $118,000. Of course, there might be fluctuations in between, but stay calm, don't mess up your chips, manage your risks, and look forward to new highs."
