Last week, we watched breathlessly as Bitcoin steadily climbed to new highs.
This morning, as of press time, Bitcoin seems bound to throw away a lot of those gains rocketing back down to around $3700.
Expert analyst Yuval Gov at Cryptopotato deals with this philosophically with his often repeated quote: “The bulls walk up the stairs – bears jump out the window.”
In morning analysis termed “breaking news”, Gov breaks down what’s behind the recent route
In the last 30 minutes, Bitcoin lost over $400, and as of now trading for around $3800 (Bitstamp), with a market cap of under $68 billion, after reaching a daily low of $3700,” Gov wrote this morning. “This is roughly $500 away from the daily high, reached this morning, at $4190 …we’ve mentioned that Bitcoin had reached a significant resistance level of $4200. After touching it, BTC got rejected and following some consolidation, and then the ‘ugly’ dump came across … Bitcoin found support on the lower ascending trend-line of the ascending channel (marked in orange). The RSI indicator, which encountered resistance of 76 levels, had turned bearish and is currently re-testing support on top the descending long-term trend-line.”
Gov also references Bifinex open short positions chart and says that the shorts “had broken down the long term support line.”
“Another thing to keep in mind is the weekend behavior,” Gov wrote. “During weekends, many traders are away from trading. Hence, it’s pretty easy to make price manipulations.”
In addition to Bitcoin’s whipsawing, there’s a lot of talk about Ethereum as that second-run crypto nears a series of hard forks in the road. In fact, there’s some debate about which forks will be most impressive to markets. The upcoming Constantinople drew recent concern over the Create2 feature, though top brass now suggest there’s nothing to fear in terms of security. Other hard forks are intended to prop up certain aspects of ETH use that may run markets higher.
Keep an eye out! This week will be big for both BTC and ETH.