Why BITCOIN Pumped Hard Yesterday (21/08/2018): Technical And Fundamental Analysis.
Market Update
It is August 22nd, 2018! BTC dominance is at 53.1%. Total market cap is currently at $216.9 billion! The volume of last 24h was $12.1 billion!
We all saw what happened last night after Bitmex came back! If you do not know the reason for that massive pump, here you are short explaination!
Bitmex server went down because of update and they suspended trading! As we know, Bitmex is currently number 1 exchange! Others exchanges can't manipulate the price if Bitmex whales are not cooperating! While they were unable to short Bitcoin price, whales on other exchanges pumped the price because the majority of other exchanges are not allowing shorting ( Binance for example ) and they use this opportunity to pump the price.
While Bitmex were down, you were not able to trade but you could place orders! While price on Bitmex still around 6460, price on other exchanges were much higher! That's the reason why a lot of long market orders were placed and because they thought it is easy money ( catching this price difference ). But, it looks like a lot of members tried to catch this price difference and we saw massive pump!
I hope this explaination was easy to understand! I just want you to know that it was 100% auto trading! The pump was made by market orders. Market orders are automatically buying once price reach your price. But execution price could be 1% or 1000% from your price. There is no news that caused this pump! Market condition is still the same!
This pump filled a lot of short stop losses! Also, this pump opened a lot of long positions! We are very close to to the market with double pressure! What does double pressure mean? It means that both, bulls and bears are pointing in the same direction! Why?
A lot of long opened above 7000 will cause big fear for the holders of these positions! They are looking for exit and if price start dumping they wont wait too much and they will jump out or their liquidation price will be reached! As we have now less short positions then we had one day ago, we have now a lot of potenital shorters!
So, this is why it is called double pressure!
That's market analysis!
The technical analysis is sowing us that we were rejected by top of daily bollinger band and now we have very big wick but at the moment the body of that candle is not that bad! But, it is still not even half of the day behind us, so if we see price drops below 6550 or 6500 and close there, almost 99% we are going to drop! For that we need only $100 drop, it is something that is not impossible!
The fundamental analysis of market is even more important at the moment! We are expecting SEC announcement of ProShares ETF proposal! Our opinion is that it wont be accepted because of their condition and the way ProShares are planing to open ETF!
A lot of longs opened above 7000, a lot of potential new shorters, TA that is showing big wick at the moment, FA that is mostly going to be negative! I am sorry, but I can't be bullish on BTC in next few days!
The only reason why I will become bullish is positive news from. SEC about ProShares ETF proposal! Without positiove news, we are going down almost for sure until next potential positive news!
BTC Chart: https://www.tradingview.com/x/m0iXltui
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