On Monday’s gambit, the target appears to be $16,600. Then a one-minute candle was triggered to drop the market more than $3,000 below the Bitcoin spot price.
Selling pressure was artificially created to very quickly deliver the result-getting to the target price number where stop-loss clusters are set.
What happened at Kragen seems to be a stop-loss-run crash. As a result, a large number of positions were liquidated and many of the speculators were hurt. The large volume trader can watch the process in real-time and see the rebound that made them richer.
Traders’ liquidity is always at risk and it’s a good idea to be cautious surrounding price points that are significant.
Many traders set their stop-loss positions based on recent lows to assure they don’t lose the overall investment. Be creative when you set your stop-loss price points.
Bollinger says “classic top formation” was really in-play
John Bollinger, the creator of the market volatility indicator Bollinger Bands, claimed in a tweet that what happened at Kragen was a “classic top setup.”
OK, time to pay attention, $BTCUSD. That is a classic top setup. No confirmation yet and the setup could easily be overrun, but wise traders should wash their glasses.https://t.co/RKgTJje5IU
— John Bollinger (@bbands) November 30, 2020
