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Bitcoin (BTC) hit all-time highs of $28,400 before crashing thousands of dollars on Dec. 27 — the latest chapter in its Christmas trading frenzy.
Data from Cointelegraph Markets, Coin360 and TradingView showed BTC/USD gain and then lose huge amounts in USD terms during trading on Sunday.
After topping 15% 24-hour gains, Bitcoin encountered heavy selling pressure above $28,000. Unable to sustain its extremely rapid upwards trajectory, the largest cryptocurrency then fell to lows of $26,500.
At press time, volatility ensured that no firm market direction was in control as BTC/USD fluctuated around $27,000.
As Cointelegraph reported earlier in the day, Bitcoin set a number of records with its latest moves, including passing a $500 billion market cap for the first time.
In addition, Monday should see the largest gap in Bitcoin futures markets ever created.
This is gonna be the biggest CME gap in history pic.twitter.com/IWBsyQsXab
— Saylor Moon Fan Club (@cryptoSqueeze) December 27, 2020
Since overcoming $24,000 resistance, Bitcoin has traded in uncharted territory with only impromptu sell levels creating fiction in what looks to be an increasingly parabolic market.
With institutional investors taking a break, talk turned to retail buyers fuelling the latest phase of the Bitcoin bull run.
“The bull cycle of bull cycles has started, as more and more players are starting to adopt towards Bitcoin and cryptocurrencies,” Cointelegraph Markets analyst Michaël van de Poppe summarized to Twitter followers.
Van de Poppe continued to eye $19,500 as a possible retracement zone, with altcoins in line to benefit from Bitcoin’s example once its own gains slow — potentially next month.
Binance order book data meanwhile shows that a formidable sell wall at $30,000 will likely be the next major hurdle for the BTC bulls.
Bitcoin (BTC) fell by almost $1,000 in under an hour on Dec. 23 as spot markets refused to buy fresh good news from institutional investors.
Data from Cointelegraph Markets, Coin360 and TradingView showed a surprise bearish trading session for Bitcoin on Wednesday, which hit local lows of $22,800.
It took less than sixty minutes for BTC/USD to descend from highs of $23,718, reaffirming volatility as a feature of the current landscape as well as the selling pressure surrounding $24,000.
At press time, the pair circled $23,000 as the market took a brief respite to determine direction before Wall Street opened.
The move contrasts with bullish accumulation continuing from institutional quarters, with Grayscale adding more BTC to its assets under management on Tuesday than the entire previous week combined. That week-long accumulation, although lower, still witnessed a new all-time high for Bitcoin.
Grayscale added 12,319 BTC ($284.5 million) on Tuesday, while last week’s tally was 11,512 BTC ($266.1 million). For context, Bitcoin miners are currently able to release around 28,000 BTC per month in block rewards.
“Bad news for Bitcoin bears,” analyst Kevin Rooke commented on Grayscale’s continued commitment to Bitcoin buy-ins.
As Cointelegraph reported, MicroStrategy, which now owns over 70,000 BTC, reportedly did not move the market with lump-sum buying last week when it upped its reserves by $650 million.
Wednesday meanwhile saw further signs of fresh institutional deals, with Coinbase seeing a sudden large outflow in what one analyst suspected was another over-the-counter (OTC) purchase.
“12,006 $BTC flowed out from Coinbase a few hours ago. As I said, it went to custody-looked-like wallets,” Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, tweeted.
“It seems that Coinbase makes a new cold wallet for each customer after the OTC deal for institutions. I’m very bullish on $BTC.”
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Join: https://t.co/8XZg338eUV https://t.co/2QfIoi8yhL
Opened a few charts.
Decided Bitcoin look like it was going to bounce, closed my short.
Decided LINK looked like it was going to bounce, set my bids.
That’s my trading day. Took 5 minutes at most.
Then you trade a few minutes a day and make more money on less trades.