Daily Market Analysis - BTC
The market had a sharp downturn yesterday, and the market cap is down to 224.62B. Dominance has remained low despite the sell off and is down further to 56.63%. The price of Bitcoin is above 7100.
Yesterday, there was a market order put in at 6200 for 5000 Bitcoins, which means one of three things.
A) Someone accidentally sold a large quantity with a market order lower than they expected and lost a lot of their own money.
B) An attempt to manipulate price from an individual who was shorting the market with leveraged derivatives to free up their trade and avoid losses. Which still cost them.
C) Someone with a large volume of Bitcoin was attempting to scare the market and cause a price action based on fear which would also force algo traders and bots to sell triggering cascading stop losses. If that was the case, the attempt failed and the person still lost a lot of money.
The conclusion is that the sell off yesterday had no specific reason and whoever did it either broke even or lost a bunch of money doing so.
Whales in crypto are often bad traders with too much capital and no skill. Such is the way of an immature market.
As for the charts, the formation could be viewed as an ascending channel or a rising wedge. Price action is dependent on support and perceived market conditions.
Volatility is reaching a historical support point, and the stochastic indicates there is room to come down further from here.
Bias of market direction should not be formed based on technicals at this point, the most important factors at play are the psychological price levels.
If support at 6700 cannot hold, the market will most likely turn bearish with price action following.
On the other hand, if price action can break resistance at 7300 again, there should be some restored confidence in the market, which should help to elevate the price back to it's previous levels between 7500-8000.
Yesterday, there was a market order put in at 6200 for 5000 Bitcoins, which means one of three things.
A) Someone accidentally sold a large quantity with a market order lower than they expected and lost a lot of their own money.
B) An attempt to manipulate price from an individual who was shorting the market with leveraged derivatives to free up their trade and avoid losses. Which still cost them.
C) Someone with a large volume of Bitcoin was attempting to scare the market and cause a price action based on fear which would also force algo traders and bots to sell triggering cascading stop losses. If that was the case, the attempt failed and the person still lost a lot of money.
The conclusion is that the sell off yesterday had no specific reason and whoever did it either broke even or lost a bunch of money doing so.
Whales in crypto are often bad traders with too much capital and no skill. Such is the way of an immature market.
As for the charts, the formation could be viewed as an ascending channel or a rising wedge. Price action is dependent on support and perceived market conditions.
Volatility is reaching a historical support point, and the stochastic indicates there is room to come down further from here.
Bias of market direction should not be formed based on technicals at this point, the most important factors at play are the psychological price levels.
If support at 6700 cannot hold, the market will most likely turn bearish with price action following.
On the other hand, if price action can break resistance at 7300 again, there should be some restored confidence in the market, which should help to elevate the price back to it's previous levels between 7500-8000.
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