OLSH

Educational | Price Movement What moves price? Market orders Aggressive limit orders Passive limit orders just stall price Focusing on price movement up but vice versa for down 1. Large market spot buys When buyers hit buy faster than liquidity can replenish Who? ETFs, funds, whales & treasuries 2. Leveraged market buys -fragile pump, could collapse if not supported but if supported by a supply shock, could overwhelm spot selling 3. Short liquidations -price moves up, shorts under pressure, liquidation = market buys, price moves up, liquidation cascade etc 4. Funding rates -shorts pay to stay open, shorts are incentivized to close, market buys 5. Supply shock -fixed circulation -whales and etfs actively move existing supply off market -less btc available, MMs quote higher, price pumps 6. Gamma: options dealers that sells calls are forced to buy btc as we rise Question: spot was selling from 74k-126K but price pumped. Why? Absorption + paper longs: price doesn’t move just because theres more buyers than sellers. Price moves when selling is absorbed without price going down. The buying caused by forced short closure overpowered short selling + options gamma So continuous spot absorption, short liquidations, btc calls under pressure & well calculated leveraged buys likely caused the pump to 126K even though spot was selling. Btw: True market maker’s don’t decide direction, they flow with the “current”