Investors Bitcoin And to altcoins While investing, he wants to make a lot of profit in a short time. For this reason, he wants to buy low and sell high.
Although it is difficult to implement the strategy of buying low and buying high CryptoQuant The analyst announced a data that investors should follow to buy on the dip.
named MAC-D CryptoQuant analyst uses liquidation data in futures to take a position in BTC and buy cheap BTC He explained his purchasing strategy.
Accordingly, the analyst who shared the liquidation chart stated that, according to the chart, if a large number of long positions are liquidated after a sharp decline, there will be an upward turn in the price; He said that if a large number of short positions are liquidated after a sharp rise, there is a downward turn in the price.
Stating that the situation mostly progresses like this, the analyst stated that investors should basically examine liquidations of $ 10 million, $ 30 million and $ 50 million in declines or rises.
According to this information available Bitcoin Evaluating the situation, the analyst said:
“On the chart, we see the liquidation amount of long and short positions according to the 1-hour time frame chart.
According to on-chain cycle indicators such as MVRV, we are currently in a recovery and upward rally phase.
Therefore, the right way to react to the price correction is to take a long position, that is, buy BTC.
Therefore, if the long position is liquidated for more than $50 million, this is an opportunity to buy Bitcoin cheap, hence the need to go long.”
Considering the data given by the analyst and the fact that long positions were liquidated as a result of Bitcoin falling to $ 44,000 after approaching the level of $ 48,000 on January 10, it seems logical to take a long position in BTC.
However, even though this data gives an upward signal, do not make your investment decisions based on a single data or signal. These data are helpful data that have a margin of error and have never been proven to be 100% accurate.
Make your investment decisions based on your own research.
*This is not investment advice.
For exclusive news, analysis and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price monitoring now by downloading our applications!