- Bitcoin was up more than 6% on the day bring the price to the highs of $6,875.10 and testing the key resistance at $6,900.
- This radical buy rally has been referred to as by many of the industry’s well-informed investors as a run on buy stops.
The cryptocurrency market and particularly the king of cryptocurrencies by market capitalization, Bitcoin is like a beast does not ask anyone for permission to act. The postponement of the US SEC decision on a Bitcoin ETF sent BTC/USD spiraling and free falling like a rollercoaster that has broken from its rails pulling the entire market with it. Bitcoin plunged mercilessly from trading above $7,000 to below $6,000 in less than a week.
However, slight corrections began last week with Bitcoin stepping over $6,600 but failing to sustain the bullish trend above this level. The asset has been in a week-long consolidation but like the beast that it is, it dramatically sprung out of this consolidation above $6,400 adding over $400 in less than 30 minutes.
Bitcoin was up more than 6% on the day bring the price to the highs of $6,875.10 and testing the key resistance at $6,900. The surge was so great the Bitcoin’s market capitalization added a whopping $5.2 billion. The bears seem to be angry enough and battling to trim the gains, besides at the time writing Bitcoin is trading at $6,675. The buyers have found a support at $6,630 while the MACD is in the bullish zone and the stochastic oscillator is ranging at the 53 percent mark.
While the surge is a welcome in a market that has been walloped by the bear pressure, some crypto enthusiasts and investors do not believe that it was entirely organic. This is because the surge came precisely at the time BitMEX, the largest BTC/USD crypto exchange by trading volume went down due to a scheduled maintenance. Don Le, CEO of ChainRock said in a comment on Twitter:
“Is it a coincidence Bitmex is down for maintenance and we get a pump?”
According to Cryptoslate, a crypto news website:
“Despite a stream of positive regulatory developments and corporate sponsorship in the cryptocurrency space, a number of industry leaders have called for lower lows “” including BitMEX CEO Arthur Hayes’ prediction of a $3-5k bottom.”
Significantly, shorts have risen to almost all-time highs recorded in mid-April. This radical buy rally has been referred to as by many of the industry’s well-informed investors as a run on buy stops. A user by the name @Bacon_Chain said once before that:
“If you ever want to break $BTC free from consolidation…Just get the exchange with the most trading volume to go down for maintenance. Whales love liquidating as many helpless people as possible â¤ï¸Hug your local whale for this pump”
The latest squeeze caught many traders who have been liquidated unawares. They blame the bulls for taking advantage of the maintenance downtime at BitMEX. Traders were not able to change their positions during the one hour. Bitcoin has experienced several short squeezes with the most significant being in mid-April this year where BTC recorded a $16 billion pump.
The cryptocurrency market, although still young has had fair accusations of some players manipulating the prices. Such accusations led to Litecoin founder Charlie liquidating his entire stake in LTC to stay away from instances of conflict of interest.
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