Bitcoin CounterFlow Glossary
Futures Market |
Spot Market |
Short |
Long |
Short Squeeze |
Long Squeeze |
Liquidations |
Liquidity |
Sell The News |
Market Makers |
Sideways/Accumulation |
Price Surge |
Sentiment Indicators |
Onchain Indicators |
Halving |
Support |
Resistance |
Bull Trap |
Bear Trap |
DCA |
Funding Rate |
Bitcoin Dominance |
Small Investors/Retail |
CoinGlass |
TradingLite |
TradingView
Futures Market: A trading segment where Bitcoin contracts are bought and sold with future expirations, allowing leverage and bets on price increases (long) or declines (short).
Spot Market: Immediate trading where Bitcoin is directly bought or sold without futures contracts or leverage.
Short: A position betting on Bitcoin's price decline.
Long: A position betting on Bitcoin's price increase.
Short Squeeze: A movement where traders holding short positions are forced to buy back Bitcoin due to a sudden price surge, further driving up the price.
Long Squeeze: The opposite of a short squeeze. Traders holding long positions are forced to sell due to a sharp price drop, amplifying the decline.
Liquidations: Events where leveraged positions are automatically closed by exchanges due to insufficient margin to cover losses.
Liquidity: The ease with which an asset can be bought or sold without significantly affecting its price. Higher liquidity means lower volatility.
Sell The News: A phenomenon where an asset experiences a sharp decline after the realization of a highly anticipated positive event, causing disappointment and surprise among investors, as well as a drop in Bitcoin's price.
Market Makers: Entities or traders that provide liquidity to the market by placing buy and sell orders to facilitate trading.
Sideways/Accumulation: A period when Bitcoin's price moves steadily within a specific range, without clear upward or downward trends.
Price Surge: A rapid price increase, typically after a prolonged sideways period where the price remains stable for months before this sudden and significant rise.
Sentiment Indicators: Metrics that analyze the overall market sentiment, such as the Fear and Greed Index, to predict future price movements.
Onchain Indicators: Data extracted directly from the Bitcoin blockchain, such as exchange inflows and outflows, active addresses, and BTC reserves.
Halving: A scheduled event in the Bitcoin network that halves miners' rewards.
Support: A price level where Bitcoin demand is strong enough to prevent further declines.
Resistance: A price level where Bitcoin supply is large enough to prevent further increases.
Bull Trap: A false upward movement that makes traders believe a price surge is starting, only for the price to drop shortly afterward.
Bear Trap: A false downward movement that makes traders believe the price decline will continue, only for the price to rise shortly afterward.
DCA (Dollar Cost Averaging): An investment strategy where regular Bitcoin purchases are made regardless of the price.
Funding Rate: A periodic fee paid between traders in futures markets to balance the contract price with Bitcoin's spot price.
Bitcoin Dominance: The percentage of the total cryptocurrency market value that belongs to Bitcoin.
Small Investors/Retail: A term used to describe small-scale investors.
Platforms and Tools
CoinGlass: A platform that provides data on liquidations, funding rates, open interest, and other Bitcoin market metrics.
TradingLite: An analysis tool used to identify Market Makers' orders and other special indicators.
TradingView: A charting and technical analysis platform used by traders to track Bitcoin's price.