Seesaw price action in crypto as the week-long rally has paused; yet we’ve also not seen one of those rip-your-face-off declines so far, either. Too much time, in my mind, was spent by market commentators trying to decipher the origins of the buying spree from last week. A lot of folks are insisting the meteoric rise from $4,200 to where we sit now was “one single buyer”. This reminds me of the “single-bullet theory” from the Warren Commission: it grabs headlines; but when you break it down it soon crumbles like a house of cards.
If there was only one bitcoin buyer last Monday that foolish drove prices obnoxiously higher, then why do we continue to hover here now. Much volume – billions of dollars worth, actually – has been transacted at this new price range. Surely, buyers and sellers must since then have come to an understanding this new trading range is a fluke. And we can fall back in line a thousand points lower like none of this occurred. Right? When markets “fill gaps”, they often do so quickly. If you look at a btc chart, you probably can see the range between $5,300 & $6,200 historically is an extremely low volume area. Think of a hot knife going through hot butter. Or better yet: just consider how effortlessly that last 20% went. What goes up must come down.
Or is it.