On Sunday morning (February 16), the price of Bitcoin (BTC) quickly regained the $ 10,000 mark after a turbulent trading day, causing the price to drop 5.35% to $ 9,853. The ability to break downside has increased as Bitcoin cannot hold above $ 10,330, and for the past 4 days, the area from $ 10,450 to $ 10,500 acts as a stiff resistance.
According to data from Skew Analytics, the rapid drop of 5.35% caused leveraged positions worth $ 90 million on BitMEX to be liquidated.
Shortly after the sharp correction of Bitcoin price, the cryptocurrency community on Twitter began to speculate that the whale was active. Some traders have pointed out the famous Bitcoin whale named Joe007 is one of the players who play a part in this latest adjustment.
Paolo Ardoino – CTO of Bitfinex, posted the above image from Bitfinex's chart and he tweet:
“How to earn $ 10 million in 5 minutes @ J0E007.”
The famous Trader and analyst collaborator of CoinTelegraph filbfilb also shared the chart above in his Telegram group and pointed out that when a selling wall was removed, the Bitcoin price immediately dropped. Filbfilb suggested that Joe007 took advantage of thin book orders over the weekend to dump Bitcoin prices below $ 10,000.
“It seems that Finex whales have dumped.”
This is not the first time a cryptocurrency whale has been involved in fluctuations that significantly affect the entire spot market. In December 2018, Joe007 took part in a bet with Dogecoin supporters to claim 10,000 DOGE and then it seemed that the whale had built a wall to buy 800 BTC to protect the $ 7,200 support level.
What next will come to Bitcoin?
Now that the wave is down and the price is more stable, we can look at the charts to see where the price of Bitcoin will go in the near future. The fall below $ 9,900 pushed the price out of the bullish wedge pattern and to the lower band of the Bollinger band.
A closer look at the daily and 6-hour time frames shows that $ 9,800 has acted as a support and the VPVR indicator shows high volume buttons in the range of $ 9,898 to $ 9,756. Below this level, there is also support at $ 9,400 – near the 23.6% Fibonacci retracement level.
In case the $ 9,400 level fails to provide support, the price of Bitcoin may drop to the 50-day moving average at $ 8,800. Despite this somewhat poor outlook, traders don't need to sell at market prices and run to higher positions.
After an incredible week-long rally seeing Bitcoin price go from $ 6,853 to $ 10,497, many traders believe that digital assets are overdue for an adjustment.
For example, CoinTelegraph analyst Michael Michael de Poppe – who today is tweet chart above and say:
“The bull market only gives you a few regressions and usually they get bought up pretty quickly. This is a good decline and immediately comes to the first area of interest. Altcoin holds very well in the $ BTC pair. Calm pace -> everything goes on. ”
As prices approach the weekly close, traders will want to see Bitcoin recover and hold at $ 10,000, and try not to let the $ 10,100 – $ 10,300 area turn from support to resistance.
At the time of writing, the 6-hour time frame shows Bitcoin running along the 50-MA, creating a higher bottom and attempting to rise above the lower trend line of the rising wedge.
The relative strength index (RSI) has increased to reverse the pace from a slow pace of 39. One encouraging development trend would be, Bitcoin solved the $ 10,000 level then pushed the price to the moving average of the Bollinger Bands. at 10,200 USD.
If the price can sustain above this moving average, that will give the bulls the chance to target the upper arm of the Bollinger band at $ 10,516.
Bitcoin is not the only coin to undergo a dramatic correction on February 16. When BTC fell to $ 9,800, a series of major altcoins were also pulled into the downward spiral.
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According to CoinTelegraph
Translated by ToiYeuBitcoin