It’s been a bad year for animated films; first Sonic the Hedgehog was postponed due to widespread criticism over Sonic’s appearance. Now we have Cats and the reception is equal parts surprised and horrified. In other cat-related news, this Tiger decided to have a kip on someone’s bed during a flood. And lastly, this cityin Florida is coming up with creative ways to ward off the homeless.
As explained yesterday, the incentives to trap bears were high and the cost to do so was low. By 3h30pm BST, bulls took advantage of the market’s thin liquidity and pumped bitcoin by 9% in just 15 minutes. Looking at the rate of market orders, it seems a single-player aggressively bid up price until it triggered around $50 million in liquidations on BitMEX alone. Naturally stop-losses also kicked-in.
This renewed bullish control translated into a maximum appreciation of 16% over the day. But, now the weekend is here, what can we expect? Currently, bulls have relaxed a bit after a couple of failed attempts to break $10.7k. Still, BTC is 11% up since yesterday’s higher low. However, before we start to think of another parabolic advance, it’s better to ensure it’s able to hold its double digits.
What else? Keep an eye for this weekend’s daily opens, which happen at midnight UTC, or 1am BST. LongHash crunched the numbers and found the following hour has been the most “volatile” for bitcoin trading between 2017 and 2019. Moreover, there’s fresh FUD around the block. BitMEX, the infamous cryptoasset derivatives exchange, is being investigated by US regulators.
So, watch that story as the day unrolls. For the moment, everyone is relaxed as the industry’s largest source of liquidity is ‘only’ being probed for not being sufficiently strict in restricting users from the USA. The enquiry has been going on for some months and, like Binance’s case proved, it likely won’t have long-term repercussions for BTC. Meanwhile, while it’s clear the bearish trend has faded, look for $11.2k as the next test to overcome in case you’re cheering for something more than consolidation. Enjoy the volatility while it lasts!
▪ Decrypt’s Tim Copeland tells the story of an old Bitcoin puzzle that has a total pot of 102 BTC. But it’s not the traditional art-based challenge. Learn more here.
▪ TokenDaily’s Raul Jordan offers “a close look at Libra’s source code. The goal is to understand whether what Facebook claimed and its engineers wrote differs.
▪ The Crypto Fam’s macro threads are back. This time to argue that while alt seasons might not happen in the long-term, but there will be a next one because whales are incentivised to manipulate such tokens.
“Stocks take the stairs up and elevator down.
Cryptoassets take the elevator down and rocket launcher up.”
