2020-10-13 02:00 |
Bitcoin’s price has rebounded following a brief selloff seen earlier today that caused it to dip as low as $11,200 The cryptocurrency’s recent strength has come about due to the confluence of multiple factors that have all been helping to drive it higher It remains roughly $1,000 below its 2020 highs that were set in August, however, and there’s still a plethora of underwater investors Data reveals that retail interest in buying Bitcoin seemed to peak on August 1st, which is just one day before the 13% “flash crash” that sent BTC plunging lower Although it has since recovered from these post-crash lows, it remains down from its highs
Bitcoin and the entire crypto market rebounded from their recent lows this morning, signaling that bulls are not ready to surrender the gains that they had amassed throughout the end of last week.
The strength seen by the aggregated market over the past few days has been promising, as BTC and many altcoins were able to close their weekly candles above multiple key levels.
One interesting trend to observe is retail interest in Bitcoin, as it seems as though this metric’s peak coincided closely with a sharp decline in BTC’s price.
This could be intentional manipulation by so-called “whales” – claims one analyst.
Bitcoin’s Price Rebound After Overnight SelloffAt the time of writing, Bitcoin is trading up over 2% at its current price of $11,500. This marks a notable surge from recent lows of $11,200 set earlier this morning when bears stepped up and tried to revert its recent uptrend.
It is important to note that this slight retrace was short-lived and appears to be what helped spark the latest push higher.
The key resistance to watch now sits at $11,600, as a break above this level would be technically significant and help catalyze further momentum.
Analyst: Retail Interest Tends to Peak Before BTC TopsOne analyst observed that throughout the Summer, retail interest in Bitcoin grew up until August, at which point its price peaked and kicked off its multi-month consolidation phase.
He also notes that the 13% August flash crash that Bitcoin experienced came about just one day after retail interest peaked.
“Retail interest spiked on the 1st of August, the day before that 13% flash crash… BTC whales have no chill. Welcome to the community new bagholders,” he said while referencing Google Trend data.
Image Courtesy of Byzantine General. Chart via TradingView.This trend, if it holds strong in the future, could signal that bouts of rallying retail interests precede large selloffs induced by profit-taking from larger investors.
Featured image from Unsplash. Charts from TradingView.Similar to Notcoin - TapSwap on Solana Airdrops In 2024
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