Crypto Daily - A huge reversal on Monday saw the Bitcoin price dip as much as $7,000 during the day, liquidating 532,000 traders to the tune of $1.62 billion over the last 24 hours. Is the dip finished? MicroStrategy buys big again.
Huge volatility
Huge volatility continues to be a thing as Bitcoin bounces around in the rarified air of $100,000. It was only five days ago that the $BTC price nigh on hit $104,000, before plummeting like a stone all the way down to almost $92,000. This $12,000 move in one day has just been followed by a $7,000 reversal on Monday.Rekt traders
According to CoinGlass, long traders were ‘rekt’ by $1.41 billion in liquidations, while even short traders suffered a $185.29 million liquidation, for a combined total of $1.59 billion in losses. If there were any positives to be had here, at least it can be said that the leverage was mostly stripped out of the market.MicroStrategy buys big again
As a counterbalance to the selling, MicroStrategy bought another large chunk of Bitcoin - 21,550 to be exact. The purchase cost $2.1 billion, bringing MicroStrategy’s total held to 423,650 BTC.Blackrock (NYSE:BLK) dominates the U.S. ETF buying
While MicroStrategy buys hand over fist, Blackrock’s IBIT Spot Bitcoin ETF is doing the same. The US ETF funds bought a total of 4.78K BTC on Monday, with IBIT accounting for 3.94K of this.US/Russia about to start a BTC treasury race?
The buying of Bitcoin is hotting up on the sovereign front. With the US Treasury possibly planning to buy 76 billion worth of BTC over the next five years, the Russian government is also said to be considering the addition of BTC to its treasury.Anton Tkachev, the Russian Deputy who is proposing the creation of a Bitcoin reserve, said that cryptocurrencies were fast becoming the only form of international payments for countries that are sanctioned by the West.
Buyers respond rapidly to big BTC fall in price
Source: TradingView
The 4-hour Bitcoin chart shows that candle wicks went down as low as $94,200 on Monday. However, the fact that these are wicks rather than candle bodies tells the story that buyers are not prepared to see the price go down that far without a very strong buying response.
The price did pierce down through the rising trendline, but this, plus the 0.618 Fibonacci, acted as excellent support. Now that the short-term momentum indicators have reset, it would be imagined that this bounce should now continue.
Bullish situation for BTC on the monthly chart
Source: TradingView
The monthly Bitcoin chart provides a real eagle’s eye view of the longer term picture. Here it can be seen that the price is once more above the ascending trendline from the double top of the last bull market.
Also, the Relative Strength Indicator (bottom of chart), which signals over or undersold conditions, is signalling that Bitcoin has entered oversold territory. That said, the indicator line has broken through the descending trendline. If it can stay above, there is still plenty of room for further growth.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.