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Bitcoin traders were badly whipsawed recently as the cryptocurrency rose above $9,100 only to dump back down to $8,600. Cryptocurrency news from https://www.m8x.com/
The price action gives spot buyers or HODLers the opportunity to add to their long positions.
A widely-followed trader shared a chart that explains bitcoin’s violent price action.
Bitcoin surprised almost everyone on Sunday. The cryptocurrency suddenly spiked by 4 percent in less than ten minutes.The dominant cryptocurrency was trading at $8,787.11 around 11:15 am EST. By 11:21 am, bitcoin was valued at $9,123.34.
The quick jump in price contributed to short liquidations of about $58.04 million going into today’s trading.
Bitcoin sell liquidations amounting to almost $60 million
The cryptocurrency managed to retain most of its gains at the start of today’s trading. However, the bears were able to repel the advance. When support of $9,000 broke, bitcoin plunged to today’s low of $8,571.50. The selloff triggered long liquidations to the tune of $31 million.
All in all, traders suffered a total loss of $89.06 million as bitcoin traded from $8,600 to $9,100 and back to $8,600. This all happened in less than 48 hours. Welcome back volatility.
Analysts Are Embracing the Volatility to Buy on Dips
If you’re not trading on leverage, then you shouldn’t lose sleep over these wild swings. Bitcoin’s volatility is welcomed by short-term traders. Those who buy on the spot markets can take this chance to add to their long positions.
That’s the mindset of Todd Butterfield, owner of the Wyckoff Stock Market Institute. The analyst told CCN,
I was hoping for $8,600 to add to our long positions for a strong year-end rally.
Todd Butterfield is not alone to have this view. Scott Melker, AKA the Wolf of All Streets, also sees the possibility of a bounce. According to the trader, bears are euphoric due to the recent dump. This might give bitcoin the fuel for a powerful short squeeze.
The Bitcoin Breakout That Almost No One’s Talking About
I’ve been looking at charts and predictions on bitcoin by analysts with massive followings on Twitter. One that caught my attention is the chart by CryptoRand.
The widely-followed trader sees a massive bitcoin rally. CryptoRand illustrates how the number one cryptocurrency broke out from a large falling wedge. The dump today appears to be a retest of the former resistance.
bitcoin do or die
Bitcoin wedge breakout looks clean | Source: Twitter
For those who are not familiar with technical analysis, a falling wedge forms in an uptrending market. It indicates a period of profit-taking. Once selling is over, the asset usually breaks out with high volume.
The high volume breakout happened to bitcoin on October 26th. On that day, the cryptocurrency breached the diagonal resistance of the wedge. It also printed volume that’s over 242 percent higher than its daily average.
Also, The falling wedge breakout plays well with Todd Butterfield’s script of a strong year-end surge. In addition, CryptoRand’s analysis explains the pump and dump that happened yesterday and today.
If the trader’s reads are correct, it seems that bitcoin is building a base in preparation for a strong rally. This is something that both bulls and bears would not expect. Bulls who are waiting for $8,400 or lower would get left behind. On the other hand, confident bears would provide the funding for the spike.
It appears that the last few weeks of the year might be exciting for bitcoin.
This short-term fractal analysis on Bitcoin is based on a combination of MA periods with Fibonacci retracement/ extension levels. ** Before we start, please support this idea with your likes and comments, it is the best way to keep it relevant and support me. ** I have used the MA50/ 100/ 200 on the 4H chart. The price is currently rising after a Double Bottom around $11100, following a MA50 ... Not all of the run up in the price of Bitcoin in January 2018 was a scam, but some of it almost certainly was. It seems that there is some new life being breathed into an old scam that seeks to take advantage of the human desire for quick results with what’s now known as the “Bitcoin pump and dump”. Bitcoin price on the analysts’ radar. Last week famed Trading View analyst Trading Shot predicted that the cryptocurrency king is moving into a pump and dump action and that is a good reason to believe that the price if going to go further down. The expert analysis coupled with the current BTC price movement is tantamount to the fact that the cryptocurrency is in for a long action and may ... The Pump & Dump (P&D) money making mechanism has been very popular in the cryptocurrency space (Bitcoin and Altcoins). It is a common scheme used in cryptocurrency trading that involves inflating the price of an owned cryptocurrency through misleading statements. Bitcoin price logs its second flash drop and buy back of the day that can be viewed only on the 1 minute chart. On Sunday, the price touched $846X twice with the second move being much more aggressive. After the first dip the spot price of Bitcoin [BTC] bounced back around $300 from low at $875X. The price action orchestrates a similar dump and ...
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