Excessive volatility experienced by the BTC price action in the last few hours
The last 24 hours have given us new reasons to remain optimistic about what the future of cryptocurrencies will be in the coming months, I say it that way because despite the negative scenario that had been generated last week in the blink of an eye it suddenly changed and we could see the Bitcoin reach $30,000 again.
At the time of writing this post, the Bitcoin price had fallen precipitously to the $29,000 area, an event that was linked to wallets linked to the defunct cryptocurrency exchange Mt. Gox and the U.S. government, as it was claimed that they had moved large amounts of Bitcoin, which triggered a plunge in price action.
Now, prior to the large moves executed by Mt. Gox and the U.S. government, Bitcoin had soared to near $30,000 very much in spite of the new fears that have been woven around the U.S. banking sector.
One of the things that impressed me the most and at the same time confirmed the strength of cryptocurrencies, is that Bitcoin erased the gains made falling up to 7% in one hour below $28,000, this after knowing the moves executed by Mt. Gox and the US government.
However, despite the significant setback, the price action was able to recover quickly and reach $29,000 in a short time, which has somehow restored optimism to bullish investors and traders.
In my assessment of the current scenario, the excessive volatility that the BTC price action has experienced in the last few hours may pay good dividends to traders who like to trade short.
SOURCES CONSULTED
Decrypt Bitcoin Drops 7% in One Hour After Erroneous MtGox Wallet Movement Alert. Link
OBSERVATION:
The cover image was designed by the author: @lupafilotaxia, incorporating image: Decrypt
Dear @lupafilotaxia
I'm glad to know that you're still around. I had some break from my activities online but it's time to be back. I enjoyed some sort of 'freedom from laptop' for way to long hehehe
Let's get to your topic of discussion:
part of me was actually hoping that we will face some correction as I see pullbacks as a healthy thing. What matters is the fact that selling pressure is obviously lowering and most investors who are still holding to their cryptos should be aware about upcoming FED pivot. It's just a matter of time before FED will be forced to start lowering interest rates. And expectations of it are already the very main reason for pump all above $30k usd.
Those expectations won't be easily broken. It may be very difficult to bring any sort of 'panic sale' again in current market condition. Right now so much depends on level of interest rates and FED actions.
That's my personal view.
OH. I didn't know about it. Thanks for that update.
Great read. As always :)
Yours, Piotr
Hello dear good friend @crypto.piotr
Getting away from the laptop for a while will always be a healthy thing, glad to hear you were able to take advantage of that time to rest.
I agree with you, it is healthy for the market that the price action corrects, and even if the cryptocurrency market is very volatile somehow the external situation is collaborating to create a kind of equilibrium, which later on can give us a better floor before seeing a new bull run.
Best regards, be well.
Hello my friend. Certainly pullbacks are healthy, and Bitcoin's current volatility could certainly prove beneficial for short traders, while long-term holders optimistically await better price valuation. Regards my friend!
Hello @emiliomoron
That's right, holders will expect a better and more acceptable price valuation.
Best regards, be well.