BTCUSD - Boring Range - Liquidity Hunting

BTC has been in a boring range for about a week. Moving averages on higher timeframes are approaching price action and that's not a great thing but this range has created several opportunities for market makers to play the high leverage traders like a fiddle.

In the chart, you will notice something that would resemble keltner channels or bollinger bands. What this actually is represents 100x and 50x liquidation levels. Notice in the liquidity hunting we've seen, the price typically reaches the liquidation level of the 100x long and short and in some cases, it approaches the 50x long/short levels.

What is most obvious is we return to the mean every time (so far) which entices traders to re-enter high leverage positions because they now believe we're going to break out on the next move. We will eventually break out, but inexperienced traders will take the high leverage trades in the median of this range vs trying to go long at the lows or go short at the highs.

It's too late to trade this pattern as we've been in it long enough that the time is almost complete. Give it another 24-28 hours and we will be outside of this range and things will look much different than they do today.

We're in a squeeze on almost every timeframe above 1 hr. The next confirmed move will be big so make sure you take care not to play with high leverage as tempting as it might be, it is a trap.