Kosta Ouzas traces how Bitcoin liquidates trapped short positions up to a level of 140, then rallies roughly 25% beyond that to form a new range near 200. The pattern follows a power-law structure.
Up to 140.
Another 25%.
About 200.
So what happens is we break out, we liquefy, we liquidate all of this trap short liquidity up to 140, and then the market goes past it another 25% to create a new range. And then the process starts all over. So that puts you at about that, you know that in that range of 200. And where do I get that confluence of that is just go back in history when we liquidated last summer and then we moved into this range. We don't just stop at the top of the liquidation pool, we go past it to create a range. That's where we got that calculation. And it lines up with the power law. That's what I got. That's my 2 cents on that.
