February 20, 2024

What happened to bitcoin? Finally TUZEMOUN?

Bitcoin made 38% in 2 days, the upward movement was unexpected and without recoil. What it is? Global market reversalor the removal of stop losses and margin calls in a bear market? I would like to understand what are the reasons for such a sharp movement and what are the prospects for the cryptocurrency market.

Friday movement started due to statementPresident of China that China sees prospects in blockchain technology and wants and knows how to use it for the benefit of the Chinese economy. This is nothing more than verbal intervention, because so far no concrete steps have been voiced in this direction. The market always trades its expectations, and apparently in this case, he sharply reacted to such a statement from the “whale” in the crypto industry. At the time of this statement, bitcoin is in the downtrend, where many people are sitting in short positions, and it is obvious that such a sharp increase in the bitcoin exchange rate triggered the triggering of stop loss shorts, and even margin calls of traders who trade with leverage.
I wonder what the market will do on Monday,since the crypt itself is traded 24/7, that is, on weekends, and trading is not carried out on futures markets on weekends. On Saturday morning we already see +9% on Bitcoin, and if the price remains at these levels, then on Monday Bitcoin futures will open with a large upward gap, which will provoke a new wave of growth due to the triggering of stop losses and margin calls " short traders. Therefore, I do not recommend not making any trading operations on the cryptocurrency market until the beginning of next week, but waiting for the situation to become clearer.

After analyzing COT reports on futures onBitcoin, we see that the funds are in long positions now. But for long-term investments in cryptocurrency, if you have not already done so, the time is not right. It’s better to wait for the turn of speculative short players in this market, and only after that start to crypt the crypt for the whole cutlet, as they say

For shorter traders and speculators, it is recommended to wait for a bitcoin exchange rate above $ 10,000 and only then open long positions.