Bitcoin Volatility Continues As Whales Pump And Dump / 200 SMA In Focus
This morning Bitcoin was at 9900$ and bulls were flying high until someone dumped it 500 points for 30 mins. Right now it's at ~9000$ - that's 10% move in just 6 Hours ! The intersting thing was that the whole pump from 8600$ to 9900$ happened on three instances when extremely high volume hit the market and bears couldn't react . You can see it in the chart below.
You can see in the yellow circles the big green bars and in the green circles the volume at this moment. The "Dump" happened in the same way - high volume that couldn't be handled by the counterparty. So let's take a look at what happened after we broke the 200 SMA.
Bitcoin
We closed below the 200 SMA on the 10th of March and a lot of people expected to see continuation on the next day. Not only we didn't see a continuation but we saw a massive short squeeze. The price fell to 8370 and then at the end of the day we closed at 9550. Today we continued the upward movement to 9900$ where we got rejected by the 50-day MA and then the bears made their move and the price dropped over 10% once again. Currently we are at 9100, just above the 200 SMA (9004$), the question is are we going to hold this crucial level ?
To be honest I believe that we are going down. After the massive short squeeze, we made a very big reversal. For me this is more bearish than bullish. Also we are still below the short-term moving averages 8-day EMA and 21-day EMA.
What's Next ?
- The first big resistance for BTC is 9550$ (White line on the chart)
- Second big resistance is 9900$ (The 50-day MA)
- First support is at 9004$ (200 SMA)
- 8400$ is the next level to watch
Whats your opinion for the market in general ? Share with us in the comments :)
I think you're right, we are going lower. I tend to see us re testing the $6k level some time this month.
Me too. I think it is healthy in general to retest this level.
i hope its going to the moonnnnnn !!!
It will ! The question is where is the bottom before it does :)
For future viewers: price of bitcoin at the moment of posting is 9131.50USD
They want to make money sure. But what this guys really want is to make discourage people to invest in cryptocurrencies. People see only money when blockchain is actually chaging the world.. It will allow billions of people to access to freedom of speach ,health care, insurance and bank accounts
Everybody is in for a piece of the action. It's natural human behaviour.
Fair enough mate ! Sorry for the late reply
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Bitcoin is always the subject of discussion on both dominance of bull and bear. Nowadays the crypto market is little boring. Big investors and well- experienced traders only can stand in the hide and seek ground. upvoted and resteemed.