Bitcoin was traded sideways the full day with decreasing volumes. A long squeeze followed early this morning.
Actual support/resistance: $7'000/$8'000
A whale (individual or entity that hold large amounts of bitcoin) placed a large sell order which ended up liquidating long positions on margin trading platforms. One can become liquidated only if leverage is used. At that point, the traders had leverage and placed a bet that the market would go up (long position). If it doesn't happen, the platform closes the position as soon as the loss is equal to the initial capital and the user is liquidated.
Additionally, the centralized exchange platform Cryptopia went into liquidation, not being able to recover from the latest hack it was victim.
The MACD are now converging and the RSI(14) just fell back below the overbought line.
Disclaimer: This is our way of communicating with our community. It is meant to be used for informational purposes not to be mistaken for financial advice. Our opinion, when shared, is just that, it may not apply directly to your individual situation. Any information gleaned here is to be used at the readers' own risk, SwissBorg does not accept any responsibility for individual decisions made based on reading our daily blog. Any information we provide on our daily blog is accurate and true to the best of our knowledge, there may be omissions, errors or mistakes. Copyright © 2019 SwissBorg, All rights reserved.