Bitcoin has been doing some very weird price things lately.
It recently almost broke all the way up to $8,000, but today trades below $7,000. What's the reason for this, and what is the next direction for Bitcoin?
Let's answer all those questions in this post.
Ok. First question. Why is the price falling badly?
Remember that post that I wrote where I said that inside selling might be occuring within Bitcoin? Well, that selling has finally ended.
The whales were able to keep the prices level above $7,000 while they scalped quick profits in 50BTC position sizes. I watched all this unfold on the Bitfinex order book.
Once they had scalped clean, they proceeded to dump the market a little to collect a few more coins.
Let's look at the chart to see what I'm talking about.
I have marked up a chart a little bit to illustrate what I'm talking about.
The purple arrow represents where the whales decided to take profits. I outlined my concerns about the tiny volume indicated by the purple box associated with the big upside move in my post that I spoke about earlier. Something was fishy, and I had to know what.
My suspicions were validated by the high sell off volume that led to the big downside move indicated by the green arrow.(no, not the series.)
The sell off volume is huge, however it seems that volume is returning to Bitcoin in form of fresh traders.
I reckon a move to either 6900 or 7000 which will be met with huge resistance.
However I might be wrong. Only time would tell.
Thanks for reading.
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