Apparently last night someone got tired of waiting and decided to kickstart some bullish price action then set a new price floor. Yesterday while fiddling around with a new analytics tool I noticed a giant block of limit buy orders sitting on Binance right after a quick ~3.5% move up. The buy wall at 38,700 got up to over 1000 BTC at one point in time. Orders like this are used to accomplish 3(ish) goals.
1: Discourage bears. Why waste your capital if you are fighting against a bigger flow of money?
2a: Create an actual price floor. Without consistent bear selling pressure, no retail sell orders will be enough to break through the buy orders, and inevitably price will raise as bulls buy out the supply.
2b: Create a psychological price floor. After the price has moved up and away from this price point the bull defending that price point can just remove the orders left unfilled from the books and watch the market run-up. Then the unknowing retail buyers will THINK that is a level of support and place buy bids at that point doing the whale’s job for them.
3: If/when price returns to this psychological support price depending on how much retail is defending the price and how leveraged the market is the prior bulls can turn the tables and add a bunch of supply to the market, lower the price and flush out the overleveraged and scoop up some cheap sats.
FYI
Currently there’s 2 blocks of sell orders.
Over 800 BTC at 42000
Over 1100 BTC at 43000
I’m not super optimistic atm about busting through that right now. Momentum just isn’t there yet.
Manic Monday #2 posting shortly for paid subscribers. Have a great night everyone.
@theprivacysmurf
Soaking it all in,Thankyou