Asem2023-06-23

Liquidity Traps Before the Bull

Hi there, would like to highlight about at which phase we are in right now in the market. 1- Based on UTXO age bands we formed the bottom due to the shifting event that occurred which I spoke about before. historically it was proven that this period last for 1-2 years which so far we been around 300 days till now. 2- supply in P/L was a great metric for a clear visualization on how this liquidity period affects the market supply. (simply people are throwing money in which cause the price to increase slightly for the whales to wipe out the profit and balance the supply that's in profit and that's in lose). currently these days we are having high % of supply in profit. 3- Funding rates for derivatives are currently positively high compared to average which means that long position traders are dominant and are willing to pay funding to short traders. So we have High funding rates + high % of supply in profit that's ready to be liquidated + being in a horizontal market according to my UTXO chart. just be carful these months and take advantages of the liquidity (just look at previous liquidity in a similar period from last cycles and learn how to benefit them)