After a long period of time, Bitcoin has returned to 100k.
The large pancake has created a lot of imbalance after a long period of rising. Prices can only do two things: create imbalance and balance out the imbalance.
So, since Bitcoin has created an imbalance, should we expect the price to balance out the imbalance?
In this market, we can see that from November to January, a large number of latecomer disadvantageous traders entered the market. These individuals became the liquidity; after multiple price drops, it went back up, just to capture the liquidity of this group of people. Moreover, we found that there are a lot of weekly FVGs attracting the price. Therefore, after the 1.13 level filled this weekly FVG, the price respected it and then moved upwards. Why is it necessary to fill the weekly FVG? (Because there are leftover bullish orders from market makers and a large number of retail stop-losses here.) Remember, market makers need the support of liquidity to enter the market. Without liquidity, they become disadvantageous traders. Thus, after the price removed the lows again, it utilized CPI for upward expansion.
If you want to learn more about FVG, you can search for Aze Trading Academy on Bilibili, where this episode explains the FVG content.
