What Is Happening With Bitcoin? - Huge Green Candle!
Bitcoin was extremely stable the last week after a rough bear market. News about institutional investors that planned to get involved in crypto came out and many calls for a positive 2nd quarter were made because of the ending tax season in the US and the historical positive figures for this quarter. This and the stabilizing price created the impression that the end of the bear market is near.
Just a few hours ago a huge green candle disrupted the sideway moving price and made every cryptocurrency rocket. Are we out of the bear market???
Wow, a nice big green candle!
The amount of short positions were at an all time high
Before the price shot up the amount of short positions were at an all time high. This means that more traders than ever positioned themselves to profit when Bitcoin goes down. Because the price went against their trade, many of the short positions got liquidated and this is done through buy orders. This created even more upwards pressure and made the price shoot up more than 1000 USD within an hour. A huge short squeeze was the result.
The amount of short positions was on an ATH, they all got REKT!
In the process more than 150 million dollar got liquidated. You can see the figures here:
Are we going up now?
This is a very hard question to answer. We didn't really break the downtrend line yet, but we are certainly heading in the right direction. Also, many short sellers just got rekt and lost a lot of money, some of them will probably be scared to short again. If the bear market is broken is not yet clear, but it is surely a big step in the right direction!
We are not broken out of the downtrend yet, but very close!
The power of HODLing
I want to give credit to Tom Lee credit for his bullish view that he shared a week ago. He said that most of the profit in Bitcoin is made in only a few days a year. When you don't HODL, but wait for signals you will mis these days and finally have a way lower yearly return. Today was a perfect example of his statement:
Disclaimer
This is no financial advice, just my view on the market.
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We might see another wave of short liquidations soon. There is still a more than 25k shorts still on Bitfinex, and I'm sure many of them are getting very nervous after today's action. There's blood in the water now!
to the moon!!!!
i hope it will start upward trend now
obviously hodl and wait for perfect time is key to success
Just hodl and wait for the spike. There's a high chance it will reach more than $20,000 this year.
Bitquin became a very difficult currency
America will strive to destroy this currency, but China will be supported by the currency
A global economic war is coming
It depends on Trump. If he's open mind, he will use the potential of blockchain technology to help America or else other Nations will be the one to use it and America will be left behind.
While it could be a dead cats bounce, I don't expect it to be!
Partly could be the explained by tax day in the states, but I don't believe this could have such a big impact on the market. But it will have some influence!
Just like the potential war in Syria, a new cold war between the states in Russia and the stock market which will have to see a correction or crash coming (their bulls market is running for to long)!
Let's say where we are within a week. It we still see some progress then we maybe can conclude that the hard days of 2018 are behind us!
Crossing my fingers, cause the wife wants a new bathroom!
I though that the tax season was not so relevant too, till I heard that the total amount that have to paid to the IRS is estimated at 25 billion. If only 1% cashed out it will be a sell pressure of 250 million. That is really a lot, more than the Mt. Gox guy sold.
That’s true. Let’s call me pretty new on the crypto market. Did purchased my first coins mid December 2017. Yep, ouch!
To bring down my average book price I have been investing some extra into these coins! Like they say trying to but the dip but unfortunately each dip was followed by a deeper dip 😔
Each time a new date was proposed when the market would turn green again. The bonusses at Wall Street, Chinese new year and now the tax date! So, while I always like them to be true, I do have build some sceptisisem in my mind. Not setting my hopes to high!
Let’s hope this time it is actually true and that the bulls have been prepping themselves for this day and will be released!
i think end of bear market is near!
so much uncertainity
well we love these huge green candles
Finally the wait is over! I hopefully this is the start of the bill run.
nice post friend
we should remain calm, it will rise soon.
I'm afraid of all these ups and downs , or I'm wrong ? @michiel