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Bitcoin: A Manipulating Asset Under $30,000, Where is the Crypto Market headed?

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Bitcoin again tumbles down below $30,000. It fell sharply by about 5.58%, and it’s hovering around the USD 29500 level.

The crypto markets seem to be mimicking June 1, when prices of cryptocurrencies fell from $32,000  to $30,000. With many believing that it was different this time and that Bitcoin might break above the $32,000 level, the bullish momentum started waning during the early Asian hours.

Relative to the time when Bitcoin’s daily volumes touched more than 100 billion daily on centralized exchanges; currently, it’s finding it surprisingly difficult even to manage $30 million of daily volume, which is the product of lower volatility and low volume.

Within the past 24 hours, the derivative exchanges have registered a total loss in In liquidations of the upward of $200 million. Downfall in the crypto world markets may have also been triggered by the direct correlation with the US Equities’ sell-off.

 

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While observing the Snapshot, the chart is given above. It is evident that the upward momentum required to sustain the bullish move seemed to be waning because of the lack of needed volatility and falling volume support.

According to the PP level at $31,784, Bitcoin’s price took a U-turn at $31,765 while simultaneously breaking above the upper Bollinger band to reach overbought levels.
Even the reading on the EFI Indicator (which shows the strength of a move by multiplying volume and price in a specific multiple) suggested the formation of bearish divergence.

Even the Total market capitalization has taken a nosedive to $1.113T, or a 7% fall in the past 24 hours.

 

 

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Additionally, on a post from quicktakes, the market is seen to be in a manipulation phase. As shown in the graph, during manipulation phases, the market often takes out all of the retailers’ buy/sell stops in the futures market, resulting in massive liquidations in both directions.

Bitcoin established a high pattern (Yellow Pointer), a clear bull trap, followed by a market correction liquidated many long positions. Furthermore, the same pattern is visible right now. The market has seen significant volatility in the last three days, resulting in the highest amount of long liquidations in the previous year. When the market suffers extreme volatility and enters a manipulation period, these moves are inevitable. During these market stages, risk management is essential.

Jatin Sewani is crypto markets writer/reporter based in India. He is skilled in onchain as well as technical analysis. He's currently pursuing actuarial science which lets him look at things from a risk-based perspective.

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