Published
4 years ago on
October 28, 2019
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Last week we saw what many thought to be the end of 2019’s crypto run but now it looks like its the second coming.
Yesterday, the leading cryptocurrency saw a significant increase from around the $7k range to past $9.5k for a short time. Now though, bitcoin has calmed down a bit and is priced around $9.3k at the time of writing.
In the long ten years since Bitcoin was created, this is the third biggest one-day gain it has experienced. According to one analyst Willy Woo, the leading cryptocurrency in this cycle is trading like it did in the 2011-13 timeline.
“The liquidity of the pro funds are the new oversized whales we had in the 2011 days. Expect volatility and chart shapes like a low liquidity shitcoin or early BTC.”
Bitcoin Value
Even so, what would this mean for the price of bitcoin?
In a tweet posted last week, Woo explains:
“BTC is still in consolidation and blow-off. 4k->14k was an unprecedented series of short squeezes. In other words the price run up was dictated by on-exchange trader games without sufficient organic investment volume to justify a long term climb.”
Before we go any further though, it’s worth saying that we aren’t financial investors and this isn’t financial advice. Please do your own research before putting your money in a cryptocurrency and always remember to trade safe!
With this unexpected price movement being so strong on the upside, Woo says what caused it was “on-exchange trader games without sufficient organic investment volume to justify a long term climb.”
But a question that is on a lot of people’s lips is, are we still in a bear market?
Woo claims it’s like a local bear structure but inside a macro bull space which isn’t a bad thing as the analyst states “the longer this consolidation lasts, the higher the price target for the bull market top.”
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!
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