Volatility is back, that’s for sure. Over the past 20 minutes, the cost of Bitcoin (BTC) fell to $ 7,800, bringing Bitstamp to $ 6,600. It is rumored that this sale was the result of a massive sell order placed on Bitstamp, as evidenced by the fact that during this reset, the gap between its price exceeded $ 500 and was observed in BitMEX, Coinbase, and other large exchanges.
At the time of writing, the crypto asset is trading at $ 7,100 and continues to move by the minute, which means huge volatility.
This was only confirmed by the fact that colossal sales walls were noticed on Bitstamp hinting that there is one organization or group of traders, probably based in Asia, who are trying to suppress the price. In fact, one commentator on Twitter noticed that such a move was provoked to try to eliminate the long positions BitMEX had been accumulating because Bitcoin held about $ 8,000 for several days in a row.
The data will confirm that this step worked. According to Bitfinex, a popular cryptographic “cynic”, over the last hour longs worth $ 250 million were eliminated on the stock exchange. In other words, these optimists have just been beaten.
Analysts warned Bitcoin investors
Interestingly, analysts warn of such a move all day, paying attention to a simple technique to clarify the situation. On Thursday, popular analyst Philb Filb noted that the cryptocurrency market had exceeded … so far one way or another.
He notes that the “long-short” ratio on Beatphone is “zeroed out”, which drastically reduces the chances of a short compression, which will lead to an increase in Bitcoin. Moreover, support for orders (support for purchases) is declining hour by hour, the parabola that BTC has been tracking for the past few months is “shaky,” and the volume in this seed market is declining, and all signs of this are not very encouraging.
Philb expects Bitcoin to recover to the level of 0.618 (61.8%) of the Fibonacci recovery of about $ 5,200, which, in his opinion, could be the last place for the accumulation of BTC, perhaps ever. He is not the first to suggest that the drawdown has arrived.
Josh Olszewicz of Brave New Coin noted that the Bitcoin chart is screaming for a return to “below $ 7,000.” It takes into account the fact that the Ichimoku Cloud, a set of indicators used to determine trends, dynamics and key levels, now shows that BTC is over-expanded. And guess what we reached below $ 7,000 before quickly bouncing higher.