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During yesterday’s fall, the first cryptocurrency, at the moment, reached levels near $32,700. However, this was also a signal to start buying, as a result of which Bitcoin rose to the amount of about $4,000 and again consolidated above the psychological level of $35,000. At the time of writing, the largest digital asset is trading in the $36,400 region.
Is it a development? I highly doubt it. The price of BTC simply returned to the zone from which the collapse had previously begun, without setting a new local maximum, and even more so, getting out of the “Head and Shoulders” formation. The abnormally high buying activity was most likely the result of the whale averaging its positions intervening in the game, however, since new volumes that could pick up this trend did not enter the market, this movement can be considered extinguished.
At the current stage, the price of bitcoin is starting to decline again. It is highly likely that by the end of the day, the largest digital asset will again lose the level of $35,000 and return to levels close to $32,000. This statement is supported by the strongly reduced purchasing activity, the inability of the asset to get out of the bearish “G&P” pattern, as well as the fact that during the recent bullish rebound, the price of BTC could not even reach those levels that are the upper limit of the local downtrend . In fact, the buyers lost strength as soon as they reached the middle of the trading channel, without even trying to announce the possibility of further growth.
This growth pattern is very similar to the manipulation that whales sometimes resort to in order to knock out the stops of other players or provoke liquidations of their transactions. During such an event, we get a long candle, which, after a collapse, quickly returns to its original indicators. Some call this phenomenon “helicopter”.
This manipulation could be an attempt by large players to clear a few walls from limit orders of buyers. In this case, the whales, by their actions, weakened the support in the $30,000 – $32,000 range, which may cause its subsequent breakout.
Ethereum also made an attempt to recoup the losses it had received earlier. At the moment, the price of the second largest cryptocurrency by capitalization reached around $2,160, but subsequently, it received a bullish momentum and, at the time of writing, is trading around $2,411.
ETH is at the lower limit of the downward trading support channel dictated by it, however, its strength will hardly be able to contain the pressure from the bears. As in the case of BTC, as in the case of Ethereum, we observe the same trading, the consequence of which will be a pronounced price movement. And apparently, we are talking about a new dump.
#Bitcoin #Bounces #Ethereum