I was up late last night and early into this morning watching the market trade on different exchanges. The spreads that market makers were using were massive and the seemingly endless buy orders rolling in suggested they were artificially pumping the price. Specifically pushing the market past some VERY key significant resistance and indicators (RSI) as shown.
Why would they do this? Potentially quite a few reasons.
1. Exchanges liquidating shorts and potentially fresh long positions with gigantic scam wicks
2. Liquidity trappers (whale bears)
3. Standard pump and dump
#3 is kind of rare with the size of bitcoin market cap but with institutions in the game, the capital to accomplish this is there. Either way. As a retail investor approaching this situation...you need to do so cautiously. I have marked the high and low of this range we're in. At this point in time, both seem possible. Which one are we more likely to hit first? Who knows. The resistance we just broke and the potential RSI divergence breaking would point to 41k. However the volume along with other peculiar things happening on exchanges right now tell me this could very well be one big scam wick and the trend down has not been broken. Ultimately this is not financial advice and I would urge you to be very hesitant on following the ideas and opinions of traders on here right now.
Why would they do this? Potentially quite a few reasons.
1. Exchanges liquidating shorts and potentially fresh long positions with gigantic scam wicks
2. Liquidity trappers (whale bears)
3. Standard pump and dump
#3 is kind of rare with the size of bitcoin market cap but with institutions in the game, the capital to accomplish this is there. Either way. As a retail investor approaching this situation...you need to do so cautiously. I have marked the high and low of this range we're in. At this point in time, both seem possible. Which one are we more likely to hit first? Who knows. The resistance we just broke and the potential RSI divergence breaking would point to 41k. However the volume along with other peculiar things happening on exchanges right now tell me this could very well be one big scam wick and the trend down has not been broken. Ultimately this is not financial advice and I would urge you to be very hesitant on following the ideas and opinions of traders on here right now.