Bitcoin [BTC] undergoes massive volatility in price as bulls and bears continue their tug of war around $7000.
The Upbit hack spread through the media, causing a lot of stir in the crypto markets. What followed was a drop in Bitcoin prices.
Whale Panda, crypto analyst, and investor tweets
In all seriousness though, this hack is small. No reason to make it sensationalistic with emojis and exclamation marks. $50 million in today’s market isn’t much. Yes, it’s newsworthy, but it isn’t that big of a deal.
The 1-hour chart developed a bullish chart pattern, confirming a move to the upside. The inverse head and shoulders pattern is bullish with a target of just above $8000. Mati Greenspan, leading crypto analyst hints on the pattern in this tweet.
The stop loss for the trade would ideally be around the neckline. The breakaway point is around $7200 for the next few hours. The trade is witnessed on a one hour chart. Hence, the continuation of the trade towards the long term is not guaranteed.
Moreover, the long term trend in Bitcoin [BTC] is still bearish.
The traders are long with a conviction as the funding and premium rate is high at BitMEX. The BTC basis on Okex also turned positive from high negative magnitudes after the definite break from Upbit’s news. Overall, the percentage of longs in the market (Bitfinex, BitMEX, Binance) grew by over 60%.
Nevertheless, Upbit FUD caused significant volatility in the market. An instant drop of $300 followed it. Hence, while the bulls are looking for a run, it seems like they might lack the strength at the moment.
Furthermore, Bitcoin [BTC] futures chart on CME is also facing resistance from the descending channel and parabolic downwards curve.
The price of Bitcoin [BTC] at 14: 00 hours UTC on 27th November 2019 is $7280.
Do you think Bitcoin will break above $7500 or not? Please share your analysis with us.
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