BUYING PRESSURE

Last week the cryptocurrency market experienced an own expected which makes Bitcoin see a 12% daily gain and no big surprise because the course of the pump remains the same as the last one which is short liquidation. According to the record on coin glass, over $100 million of BTC shorts were liquidated which means Bitcoin saw over $100 million in buying pressure from short traders. You should not forget that Tuesday was a bearing day because the CIP data for the month of January came a little bit higher than what a lot of people expected which meant the cryptocurrency market should have trended down. You should know that that is not what happened, the United States politicians held a hearing where they talked about disconnecting cryptocurrency from the banking system.

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A more surprising thing happened last week because even though the PPI for the month of January came out higher than what a lot of people expected. The crypto markets rallied while the Stock markets crash when the SEC announced that it will make it difficult for institutional investors to hold cryptocurrencies. There is only one way to explain that, and it is that the crypto whales are supporting the markets. This was proven by the on-chain data which discovered that about $1.6 billion USDC was recently sent to exchanges and even though institutional investors may be buying the dip, all the things that are happening concerning regulatory uncertainty make it unlikely. Also, the disconnection that we are seeing between the crypto market and the Stock market makes it less likely but the correlation between the crypto market and the Stock Markets is there was genuine institutional action.

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Notwithstanding all that is happening, BTC and also major altcoins looking overbought. We are seeing the price of BTC poking the Bolliger band indicator in the weekly chart and you should know that every time this happens, BTC crash in the week that follows. You should know that also BTC was rejected on the 50-week moving average and 200-week moving average. Speaking of when the bull run will start, the monthly Bollinger band indicator says a lot about that because the price of BTC was above during the bull run but it has below now during the bear market.