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Yesterday, the mother of all tokens went vertical and produced a 20% return in just 24 hours, just shy of April’s 2nd 25% gains. However, after hitting a new yearly high of $13.9k traders finally took profit — big time — and BTC fell 16% in 45 minutes, leaving many exchanges, including Coinbase, inaccessible or unusable. But that was just in the aftermath. After some bounces during the night, bitcoin kept falling and reached a 18% drawdown — at least for now!
After all, bitcoin was climbing for eight days without closing at a lower level than it started each midnight UTC — as this timezone is used by most charting software. The last time we had such straight run was in December 2017, and bitcoin’s price doubled back then. Then we had two nine-day runs in 2017, but earlier than that we have to go back to 2015. So, it’s unlikely we will see green today.
But what caused the dump and how can you react today? To begin, and as we constantly repeat, always plan ahead to ensure your emotions don’t control you. Then, as Alex Krüger said, one cant’ predict tops — it’s all about how aggressive buyers and sellers decide to be at any given moment — and aggressive sellers clearly decided to liquidate late longs. Leverage exchanges are forced to close those long positions by selling them, further cascading price down while new traders panic. What now? Further retracement? A market-wide alt season?
Both are possible, but as long as bitcoin’s trend continues strong neither scenario will happen. After all, as Luke Martin notes, this bull run has not been fueled by new retail investors. In this regard, the great team behind Skew Markets showsthe statistics that justify the anecdote. Meanwhile, Broccolex argues $11.8k is the key level to watch — if it breaks, then look out for $9k, as TraderXO expects. Otherwise, remember there’s plenty to climb until this Sunday’s monthly close!
▪ The TIE’s platform has been updated with daily sentiment data for the major cryptoassets. If you didn’t know this trading data platform now is the time.
▪ Jimmy Aki, from Decred, extends the narrative that China is buying bitcoin, as state-run media are now advertising Bitcoin as a “safe haven”. When PBOC?
▪ Renato Shirakashi, a popular on-chain researcher, has started publishing his “daily observations”. Excellent analysis on metrics that are often overlooked!
“2017 was the year of bitcoin onramps.
2019 is the year of fiat offramps.”
