Before this move up, bitcoin and others were getting ready for another leg down. Volume profiles for most cryptos looked dismal at best. However, the order books were filled sizable orders between 8-9k region. Unless new volume materialized, we were likely to trade side ways until the buy orders were filled or dried up.
The million dollar is question: Where did these buyers come from?
I speculate these new buyers are Chinese trying hedge against the falling yuan. If I'm right, they'll use bitcoin as a money transfer vehicle. Which means after buying bitcoin they will sell it for another fiat currency or a non yuan denominated asset. If the Chinese government intervenes and protects the peg successfully, it may restore confidence in the yuan. Consequently reducing capital flight, leading to a significant drop in bitcoin volume. This obviously would be very bearish for bitcoin, and we could finally see the price go below 9k.
However, this rally has real legs behind it. If the currency wars get out of control we could definitely see new yearly highs. Also, it looks like a hard Brexit is in order for the UK. It's important to keep with world events, because moving forward they will have a stronger impact on the price of bitcoin. Good luck everyone.
Follow Me on Twitter: twitter.com/CryptoOneStop1
For Crypo Finance Videos: www.youtube.com...Bp8-qxY51u1-_MA?view_as=su...
The million dollar is question: Where did these buyers come from?
I speculate these new buyers are Chinese trying hedge against the falling yuan. If I'm right, they'll use bitcoin as a money transfer vehicle. Which means after buying bitcoin they will sell it for another fiat currency or a non yuan denominated asset. If the Chinese government intervenes and protects the peg successfully, it may restore confidence in the yuan. Consequently reducing capital flight, leading to a significant drop in bitcoin volume. This obviously would be very bearish for bitcoin, and we could finally see the price go below 9k.
However, this rally has real legs behind it. If the currency wars get out of control we could definitely see new yearly highs. Also, it looks like a hard Brexit is in order for the UK. It's important to keep with world events, because moving forward they will have a stronger impact on the price of bitcoin. Good luck everyone.
Follow Me on Twitter: twitter.com/CryptoOneStop1
For Crypo Finance Videos: www.youtube.com...Bp8-qxY51u1-_MA?view_as=su...