Bitcoin price was more volatile today than usual, and that’s a statement in itself. The normally notoriously explosive cryptocurrency soared more than $ 2,000 and nearly 5% this morning, only to crash further, wiping out the entire rally and more.
The fall brought the cryptocurrency down more than 7% and $ 3,000, leaving millions in liquidations. What caused the sudden storm?
Pump & Dump or a confrontation between bulls and bears?
Bitcoin has seen a steep drop of over $ 50,000 and the bulls are now trying to find meaningful support that will hold up. If this is not possible, another crash and the start of the bear market could be imminent. Right now whales are either playing games or waging war with each other, with heavy losses on both sides.
A sharp move in the markets today saw liquidations on both sides of the trade and volatility alone has now put the market in a solid state of fear. A pump this morning sent Bitcoin prices up more than $ 2,000 and around 5%, only to drop more than 7% and $ 3,000 immediately afterwards. Anyone who caught themselves buying a supposed outbreak is now left empty-handed. And it all happened in less than an hour, from bottom to top and then back down again.
Bitcoin price shoots up on Litecoin messages, crashes after launch
The movement was driven in large part by the larger crypto market. Digital assets are closely related to each other, so when a coin pumps, it generally lifts the entire market.
Today’s Extinction Movement was powered by Litecoin and a suspicious scenario where a fake press release was distributed claiming Wal-Mart was supporting the cryptocurrency. When Wal-Mart denied the claim, it wiped out an almost instant 30% rally that also pulled Bitcoin price back down.
What stays on the chart at higher timeframes is a candle affectionately known as Darth Maul by the crypto community. This type of extinction candle is a candle with an extremely long wick in both directions, similar to the lightsaber, the trademark of the Star Wars villain.
Currently, traders disagree on how Bitcoin will go from here. In the long term, many still believe that Bitcoin will hit six-digit levels by the end of the year, while voices are now rising to suggest that the bear market will now kick in.