Eustace Cryptus | Aug 16, 2018 | 06:00 Bitcoin $6452.89 +0.15% spent the better part of the day fighting off bears and the cryptocurrency managed to post an impressive 10% gain as it briefly crossed above $6,600. Eventually, buyers became exhausted and BTC pulled back to the $6,200 to $6,300 range.
While today’s rally was pleasantly surprising, a bullish reversal is yet to be confirmed and just like last week, its possible that Tether could have intervened to save the day by injecting $130 million of newly minted USDT into the cryptocurrency market. Perhaps this is why we see BTC price quickly cooling off after such an impressive run.
For those that believe today’s movement was the result of shorts being tapped out of their positions, feel free to have a look at the fantastic BTC Shorts vs Longs piece FilbFilb concocted earlier this week. It’s not likely that shorts were squeezed out of their positions as today’s $500 gain was drawn out over a series of hours rather than the lightning quick ascension that is characteristic of a short squeeze.
In other news, Arthur Haynes is feeling mighty confident as today he prophesied Ethereum $296.277 +0.01% could drop as low as $100 before the bear market ends. At this point, a conspiracy theorist might began to propose that billionaire cryptocurrency exchange owners are walking the dog on a tightly tethered leash — but we digress and deviate from the main purpose of this piece… A clear divergence can be seen on the RSI which when compared to BTC price action in the daily chart signaled the possibility of a bull breakout.
Around the same time, the MACD exhibited a bullish crossover in spite of BTC declining. While $6,300 is probably not the bottom, it has thrice served as a strong support and pivot point for BTC and today was no exception to the rule. Read more from bitcoinist.com…
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