The price of Bitcoin has rallied 247% since March. The corrections were not a surprise to many traders. Raoul Pal works at Global Macro Investor. He is CEO there. As reported earlier today, Pal said that 25%-40% pullbacks in a bull market are typical for Bitcoin.
Pal noted that bitcoin could often correct 25% (even 40% + in 2017) in the post-Halving bull cycles. Thus, bitcoin throws off the short-term traders (or giving swing traders a shot at the short side). Moreover, each of that being a buying opportunity. The CEO questioned if DCA is an opportunity Ahead.
Whalemap, the whale data provider, said that many waves of panic sold BTC. Thus, given the intensity of the drop, the rapid pullback of Bitcoin may have caught investors off guard. Whalemap said that a lot of panic selling yesterday was quite successful in buying tops. Their strategy is to buy high sell now.
Correction of yesterday was a combination of investors’ panic-selling and whales taking a profit. Thus, in the near term, it could increase the chances of lower volatility.
Michael van de Poppe works at Amsterdam Stock Exchange. He is a full-time trader there. Thus, he said that in the short-term, Bitcoin might be nearing a bottom formation.
Van De Poppe said that this drop in the markets might not be the end of the current ‘alteseason,’ expecting a period of consolidation. Poppe said that in his opinion, they are close to a bottom formation on Bitcoin in those regions’ confluent with the CME gap. As HL must construct for confirmation of support, trade the bounces actively. Crazy altseason will continue in the coming months.
To purchase Bitcoin on major exchanges like Bitfinex, whales bid $8,800. It happened after a sharp drop to sub-$10,000.
The price of Bitcoin abruptly fell by ten percent in a single day on September fourth.