The financial world is shaking right now due to some massive rumors spreading across Twitter. Elon Musk aerospace giant SpaceX is reportedly preparing for its highly anticipated Initial Public Offering or IPO. This momentum has triggered massive hype among global traders and investors because of the unbelievable amount of money moving behind the scenes.
Information from Coin Bureau reveals that SpaceX is structuring a share sale worth $75 billion with an initial price tag of $135 per share. Even more insane is that the biggest asset manager on earth BlackRock has already rushed to order a chunk of this IPO worth over $5 billion. This aggressive move by BlackRock has reportedly triggered a domino effect with other major institutions and sovereign wealth funds lining up to place their bids.
Because of this massive movement, monetary authorities went straight into emergency mode. Market informant OxNobler leaked that the Fed plans to inject an instant $25.5 billion of liquidity into the market right after the SpaceX IPO rolls out. Former Fed official Kevin Warsh even urged that this fresh liquidity must be added quickly to sustain market stability once the SPCX stock ticker officially goes public. On the flip side, financial veteran Jim Cramer dropped a heavy warning stating that SpaceX valuation could soar to unsustainable levels or create a dangerous bubble after the IPO.
Global Bitcoin Market Conditions
While the attention of most market participants is glued to the SpaceX IPO euphoria, let us look at how our crypto king is doing. If we monitor the spot market data, Bitcoin is actually moving relatively steady but it is starting to face some heavy technical pressure in the derivatives market.
Bitcoin is currently holding its ground around the $63.480 to $63.519 price range across top tier exchanges. The 24 hour trading volume for the BTC/USDT pair on Binance managed to hit $10.34 billion even though its daily activity is experiencing a decline of about 17.95%. At the same time, the global open interest is showing a slight correction across almost all major exchanges.
The shocking part is the sudden spike in Bitcoin total liquidations within a 24 hour window which crossed $65.92 million. Interestingly, the biggest liquidation wipeout this time actually smashed the traders who aggressively opened Short positions with total losses reaching $50.06 million. Meanwhile, daily Long liquidations were recorded much lower at just around $15.86 million.
SPCX Stock Transaction Explosion
In complete contrast to a calm Bitcoin, the sentiment surrounding this brand new Elon Musk asset immediately triggered ferocious buying and selling activity on crypto exchanges, even though the actual stock has not officially launched on traditional regular markets yet.
If we break down the Long vs Short positions for the SPCX/USDT pair, it is crystal clear that the bulls are dominating the market aggressively. On the Binance exchange, the ratio of Long accounts against Shorts jumped to 4.211. It gets even wilder on the OKX exchange where the ratio skyrocketed to hit a staggering 10.28. The total volume of futures contracts heatmap is heavily dominated by Binance with a capital turnover reaching $816.54 million, followed by OKX at $359.05 million and tradeXYZ at $283.40 million. Total 24 hour liquidations for SPCX stood at $3.41 million with the vast majority of victims coming from Long positions which lost $2.72 million.
This crazy action also spilled over to the SPCX spot market which recorded a highly significant daily price pump. On Binance, the SPCX/USDT pair sits at $171.33 with a daily gain of over 5.36% thanks to a trading volume explosion of more than 337%. OKX is not lagging behind, recording a price of $171.68 or up about 5.07% with a massive daily volume surge of over 627%. Other exchanges like KuCoin and Gate also confirmed prices in the $171 to $172 area with an average daily volume growth of over 600%.
My Opinion
As a fellow trader, I view this massive phenomenon as a highly critical momentum that simultaneously hides a golden opportunity. The emergency intervention from the Fed worth tens of billions of dollars proves that the traditional financial system gets shaky whenever capital shifts toward Elon Musk ecosystem through entities like BlackRock. The warning from Jim Cramer regarding a potential bubble is valid and we must treat it as an alarm. However, we should remember that whenever new liquidity is pumped into global markets, high risk assets like Bitcoin usually benefit in the long run.
Now let us look at the Bitcoin chart objectively using modern market structure and Smart Money Concepts based on my technical analysis directly from TradingView.
Looking at the daily chart, Bitcoin market structure is currently undergoing a highly intense testing phase. Up above, we have a very solid bear defensive wall or the highest resistance zone at $90.280 - $88.400. If the price finds enough fuel to rebound in the future, the first target that must be broken is the second resistance zone sitting at $74.265 - $73.060.
The ultimate question for us right now is whether the support zone at $62.560 - $60.000 is strong enough. This area is a vital green demand zone that is currently holding the selling pressure after the price officially broke down from a triangle pattern. Theoretically, if this support zone holds strong against the sellers, the market will have a massive chance to reaccumulate before starting a bullish rally. But as disciplined traders, we must always have a backup plan. If this $62.560 - $60.000 support zone breaks, then get ready to see Bitcoin drag down deeper toward the final defensive line around the $52.290 - $50.520 zone.
The most important educational lesson we can learn from this chart structure is the presence of an imbalance or Fair Value Gap left behind during the recent drop. We have a relatively thick first FVG right underneath the second resistance, and a very wide second FVG sitting just below our highest resistance zone. The fundamental nature of an FVG in the market is that it acts like a magnet. Sooner or later, the price will chase it and fill it back up to balance out the empty market orders.
In conclusion, even though the current situation looks like a crisis and triggers mass panic due to liquidations, the green support area is a highly attractive zone to watch. As long as we stay disciplined with risk management and understand this support resistance map, this correction is actually a massive opportunity to prepare for a powerful reversal toward the FVG targets up there.
Source
Posted Using INLEO
