Last night’s bitcoin price had some surprising swings across the market. Notorious for its sudden jumps, the top cryptocurrency rebounded over $ 2,000 (nearly 5%), only to crash afterwards, wiping out all of the profit it had just made.
The downward move took away more than 7% of BTC’s value, or $ 3,000, causing liquidations both ways. What caused this sudden storm?
Pump & Dump or a confrontation between whales on either side of bulls and bears?
Bitcoin received a hefty rejection of over $ 50,000 and the cops are now scrambling to build meaningful support. If not, the possibility of a deeper decline and a bear market is still possible. Currently, whales are at war on both sides, but all are losing severely.
The recent sharp move in the markets has resulted in liquidations on both sides of the trade, and that volatility alone was enough to put the market in a state of fear.
Last night’s sharp price spike pushed Bitcoin above $ 2,000 (about 5%) and immediately plunged above $ 3,000 (about 7%), breaking support and lows. Traders who bought the asset in anticipation of a breakout ended up losing heavily. It all happened bottom up and back down in less than an hour.
Bitcoin price pump & dump in less than 1 hour | Source: TradingView
Bitcoin price goes up when there is fake news about Litecoin and goes down when corrected
This move was mainly driven by the larger crypto market. Digital assets are closely related to price movement. So if one coin goes up a lot, so do the others.
The ups and downs last night were largely due to fake news that retail giant Walmart will be supporting Litecoin, such as Bitcoin magazine reported. When a Walmart spokesperson clarified that it was not, the 30% increase in LTC was reversed almost immediately and the price of Bitcoin fell.
Darth Maul is all that stays on the Bitcoin price chart for 6 hours | Source: TradingView
What remains on the chart in the higher time frames is the Darth Maul candlestick.
This type of bearish candle is actually a doji candle with an extremely long wick in both directions that forms a shape that looks like the flashing sword used by villain Darth Maul from the famous movie ‘Star Wars’. The impact they can have on investors and traders is as dire as this character.
Is this all just a market adjustment (falling down to get rid of weak traders) or will there be more pain both ways?
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According to Newsbtc