Feeding the Flame; Putting Gasoline on Fire
Bitcoin price today has been more volatile than normal, and that’s a statement in and of itself. The usually notoriously explosive cryptocurrency rocketed greater than $2,000 and almost 5% this morning, solely to then plummet and wipe out all the rally after which some.
The fall took the cryptocurrency down by more than 7% and $3,000, leaving liquidations in both directions behind. What triggered the sudden storm, and is that this simply the calm within the eye, or is the insanity over?
Pump and Dump Or Face-Off Between Bull And Bear Whales?
Bitcoin saw a steep rejection from above $50,000 and bulls are now scrambling to build meaningful support that holds. If not, a deeper drop and a bear market stays a risk. For now, whales are either playing games, or waging war with one another where both sides are losing big.
A pointy transfer as we speak in markets noticed liquidations on either side of the commerce, and the volatility alone now has the market in a state of concern.
A pump this morning caused Bitcoin price to rise more than $2,000 and around 5%, only to immediately drop more than 7% and $3,000 to sweep support and lows. Anybody caught shopping for what they thought was a breakout, is now at a loss. And it all played out in less than one-hour from bottom to top then back down to the bottom.
Bitcoin Value Rockets On Litecoin Information, Crashes After Liftoff
The transfer was pushed largely by the better crypto market. Digital assets have a close relationship in price action, so when one coin pumps, the rising tide lifts all boats.
At present’s wipeout transfer was pushed by Litecoin and a suspicious situation the place a faux press launch was distributed claiming Wal-Mart would assist the cryptocurrency. When Wal-Mart denied the claim, an almost immediate 30% rally was erased, also taking Bitcoin price back down with it.
What stays on the chart on increased timeframes, is a what the cryptocurrency group has so affectionately dubbed a Darth Maul candle.
This type of wipeout candle is a doji, with an extremely long wick in either direction, forming what looks like the Star Wars villain’s trademark lightsaber. The affect they’ll have on traders and merchants, is nearly as nefarious because the LucasFilm icon.
Is this it for the shakeout, or is there more pain in both directions to come?
