With more than $2 billion worth of longs decimated during the recent crash, many analysts were pondering on the million dollar question, Is the Bitcoin correction phase finished?
A news article on Ambcrypto claimed that the correction on Bitcoin was incoming, but nobody expected that it would reach such a level. The Bitcoin ATH is getting closer than expected. Cryptocurrency movements have taken many traders by surprise.
According to few analysts, the FOMO and Greed sentiments seemed to have played a crucial role, and the price shot high. The issue arose when it reached the level without proper momentum that is necessary, even if a small correction occurred.
Researchers pointed out that Bitcoin was overbought often that probably led to this situation. It is evident that the correction happening was just a matter of time. Besides, the duration of the users getting blinded by the price movement caught them off guard.
Fuzzy.One who is a supply chain and information engineering service has this to say in their tweet.
Data from the market has shown that Greed and FOMO sentiments were peaking for sometime. Hence, a correction was due to occur. It did not matter if it was a small or large correction.
That is the main reason for BTC breaking its ATH on the chart. On Bitfinex, a whale was making their short, but it might have been a single entity. The whale began shorting on October 19th.
Surprisingly after the day, BTC prices started gaining near the $19000.
It went to the mark from $11000. Unfortunately, when the price dropped on November 24th, the whale had covered shorts in both USDT and USD.
A news article on Blockcast has claimed that graphs on Binance and Bitfinex are very high. Both the exchanges are part of the largest BTC-USDT trading pair. The chances of them running in favorable market conditions don’t seem possible now.
The number of sell orders is at $19,500 and $18750. There can be a free surge of bitcoins for the mark. However, one must also note that a correction beyond the mark can cause a massive change in the BTC.