Bitcoin had a very eventful morning as the Tether collapse sparked by the news that Bitfinex has stopped all fiat deposits saw prices soar to $7800 causing many to think the bear market is over. BUT, not so fast! Non-margin exchanges such as Coinbase and Bitstamp didn't go nearly as high stopping at previous resistance near $6750 so let's not get ahead of ourselves. This premium, which at one point hit over $1200, isn't a good thing as many are speculating that Bitfinex might be insolvent and could result in a market crash if they were to go under.
People who set buy stop orders above the highs to catch a break out wouldn't have been too happy this morning as they would have most likely been underwater.
Looking at Bitstamp charts from now on to avoid that inlfated premium, Bitcoin is having trouble at the supply zone right now after spiking to the top FIB level and could see a pullback as most will continue to take profits. We, however, could also see price fill in this wick and test ressitance once more so its probably best to see what happens in the following hours.
Thanks guys
People who set buy stop orders above the highs to catch a break out wouldn't have been too happy this morning as they would have most likely been underwater.
Looking at Bitstamp charts from now on to avoid that inlfated premium, Bitcoin is having trouble at the supply zone right now after spiking to the top FIB level and could see a pullback as most will continue to take profits. We, however, could also see price fill in this wick and test ressitance once more so its probably best to see what happens in the following hours.
Thanks guys