source avatarbull market genius

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why is this spot flow not to be taken a bottom signal standalone? imagine you are a wealthy player and want to deploy some 9 figs into btc for the next years your strategy naturally would involve buying in chunks on big dips, in areas that are long-term attractive you would buy over time, and your horizon is 2-3 years, so you don't worry about being underwater for a month, you care about the average price not a singular dip so you buy at 75...73...70...68... all the way down dont confuse it as an entry point for a perp trade in such a dangerous situation like this without any other data for confluence! all it says is, some players deem this a long-term acceptable price to buy some. you dont know their positioning. maybe they're slowly converting shorts into spot btc? how much money do they have to deploy? what is the total positioning rn? it's a data point, is all what it is

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