Bitcoin Dumped! Next Move for Bitcoin and ALTS?
A massive BTC dump took place starting from 3 Dec 2021 7:30pm IST and lasted till 4 Dec 2021 10:30am IST. It was a 26% dump and was one of the biggest dump of the year 2021. We saw massive long liquidations of 1000+ BTC on various exchanges and huge whale sell offs. BTC after touching $42,000 bounced back to $47,000 very quickly again liquidating huge short positions, in short market was bleeding money.
Now, why did this happen is a different topic to cover. For now, we will be covering what can BTC’s next move can be.
You can observe in the BTC 4hr chart above that after BTC’s bounce to $47,000, it slowly started moving up towards $50,000. But the main thing to observe here is since price of BTC is rising but the volume is decreasing slowly which is not a positive indicator. It shows that there are buyers but not enough to move the market up significantly and they are also slowly fading away, which gives a lot of room for Whales to take control of the market. You can also see in the 4 hour chart that BTC is struggling to reach $50,000 mark which indicates that Bulls are not strong enough.
Now there are a couple of scenarios that can play out here :
- One highly possible scenario is that BTC may go a little up than $50,000 mark and may get rejected by 20MA after which we can the price of BTC dropping to the previous $46,000 - $47,000 where it can consolidate for some time.
- Another less likely scenario could be that it can form a support at 20MA in 4 hour chart and it can act as a support for BTC and after which it can slowly recover. But the chances of this scenario are less, since Whales have sold a lot of BTC in the market to push the price down, they need to accumulate more BTC below $50,000 to push the price up.
Out of these scenarios, first one is more likely to take place considering the volume and the price action.
NOTE : Always remember one thing that markets are subject to change at any point of time and nobody can predict what will happen. My articles are based on pure TA, market sentiments, research and experience, so please read this as an educational content instead of a trading call. I do not ask you to take trades on my articles, you can choose to or not to and I would not be responsible for any profits or losses.