In short: Bitcoin is consolidating above $30,000 following a 10% surge on Tuesday. Analyst Ben Lilly notes that the “Larry Fink Pump” may fizzle out due to the loss of short-lived trends and liquidity, but also highlights bullish indicators such as the possibility of breaking low-leverage liquidity at $32,000 and the increase in large Bitcoin holders accumulating the cryptocurrency. Investors should monitor the trend and be ready for potential volatility events in the future. Bitcoin is currently trading at $30,100, maintaining a stable price for several days.
Our quick analysis:
Bitcoin, the darling of the cryptocurrency world, has been experiencing a heated debate in recent days, with many investors wondering if it will maintain its upward momentum or experience a significant pullback. While it's hard to tell which direction the cryptocurrency will head in the coming days, one thing is clear - it's currently in a consolidation phase above the $30,000 mark following a notable surge of over 10% on Tuesday.
As a professional crypto analyst, I have been following Bitcoin's price action keenly. Recently, I dubbed the current price movement the "Larry Fink Pump," referencing the new interest BlackRock CEO Larry Fink has shown in Bitcoin and the company's application for a Bitcoin spot ETF. While the pump has caused some excitement among investors, several factors could cause the rally to falter.
For one, Bitcoin has already wiped out the remaining high-leverage liquidity to the upside, and the Cumulative Volume Delta (CVD) spot seems to have lost its short-lived trend already. Additionally, the fuel meter has dropped significantly from its pre-pump levels. These bearish indicators could mean that Bitcoin's short-term future is uncertain.
On the other hand, there are reasons for bullish investors to remain optimistic. For instance, the low-leverage liquidity sits at $32,000, and we would love to see it taken out. And, the New York trading session seems to be leading the way, which could possibly lead to a surge in Bitcoin's price.
The recent increase in the whale holding chart also shows that large Bitcoin holders, commonly referred to as whales, are once again accumulating the cryptocurrency. This trend is a positive indicator that there may have been significant accumulation happening before the recent surge in BTC's price.
Overall, my conclusion is that investors should tread carefully and keep an eye on Bitcoin's trend. While there are potential bearish factors at play, several bullish indicators show that the rally is not over yet. Lastly, be prepared for potential volatility events in the future.
At the time of writing, Bitcoin is trading at $30,100, and some of us are optimistic that it will maintain a stable price for the foreseeable future.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
0 Comments
Please, behave!