Bitcoin (BTC) made the news yesterday and today for suddenly spiking straight out of the left field. And while within minutes the most dominant cryptocurrency found itself above the $4,200 level after testing it for a number of days, it later breached $5,000 for a brief period during the morning today and the sudden spike.
In the Bitcoin news today, we are seeing another pullback which took Bitcoin to $4,650 as buying pressure subsided from the Asian and European markets. At press time, Bitcoin is trading at $4,720 and is still idle for a bigger movement on the upside.
A lot of analysts are hopeful that with the opening of the American trading session, investors across the pond will be subject to FOMO – which may drive a second wave of buying pressure. However, it is still unclear if this will occur and other analysts have postulated that the move was a result of always-on bots, despite the fact that they want to be hopeful.
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The crypto YouTuber Sunny Decree recently joked that he recently made the “worst trade since [he] got on Youtube”, as he shorted $4,200. The current situation leads many to believe that the Tuesday’s move which brought Bitcoin from $4,150 to $4,700 – more than 15% – was a result of pure technicals.
The analyst named The Crypto Dog explained that this move was simply the BTC price seeking liquidity. As he said, there was little volume for a surge this big but als little friction which triggered a short squeeze or “cascading liquidations” to perpetuate Bitcoin’s brief spike to almost $5,000.
Price sought liquidity. There was relatively little volume on that whole move. Once we passed ~4200 there were so few orders in the books it was a quick gap up.
Cascading liquidations made sure it happened quickly. pic.twitter.com/8VsrGiOxMW
— The Crypto Dog📈 (@TheCryptoDog) April 2, 2019
Another analyst named Crypto Quantamental expressed a similar sentiment but with a more bullish tone. As he explained, the move was simple and a result of weeks of consistent gains:
Yep classic human behavioral bias. They want to take something complex and make it simple. But even this was simple… consistent price rise, banging on resistance, L/S ratio declining even with rising price, huge air above $4200….
— Crypto Quantamental (@CryptoQF) April 2, 2019
Crypto investors have been over the moon recently because of the move. By large, many stakeholders expressed a buoyant sentiment and realized that the market could be finally starting a new recovery.
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