Return of Darth Maul: Bitcoin Price Pumps And Dumps In 5% Shakeout
September 13 2021 - 12:21PM
NEWSBTC
Bitcoin price today has been more volatile than normal, and that’s
a statement in and of itself. The normally notoriously explosive
cryptocurrency rocketed more than $2,000 and nearly 5% this
morning, only to then plummet and wipe out the entire rally and
then some. The fall took the cryptocurrency down by more than 7%
and $3,000, leaving liquidations in both directions behind. What
caused the sudden storm, and is this just the calm in the eye, or
is the madness over? Pump and Dump Or Face-Off Between Bull And
Bear Whales? Bitcoin saw a steep rejection from above $50,000 and
bulls are now scrambling to build meaningful support that holds. If
not, a deeper drop and a bear market remains a possibility. For
now, whales are either playing games, or waging war with one
another where both sides are losing big. Related Reading | Bitcoin
Price “Pitchfork Channel” Could Pin-Point The Last Dip Ever A sharp
move today in markets saw liquidations on both sides of the trade,
and the volatility alone now has the market in a state of fear. A
pump this morning caused Bitcoin price to rise more than $2,000 and
around 5%, only to immediately drop more than 7% and $3,000 to
sweep support and lows. Anyone caught buying what they thought was
a breakout, is now at a loss. And it all played out in less than
one-hour from bottom to top then back down to the bottom. The move
pictured above took less than an hour | Source: BTCUSD on
TradingView.com Bitcoin Price Rockets On Litecoin News, Crashes
After Liftoff The move was driven in large part by the greater
crypto market. Digital assets have a close relationship in price
action, so when one coin pumps, the rising tide lifts all boats.
Today’s wipeout move was driven by Litecoin and a suspicious
scenario where a fake press release was distributed claiming
Wal-Mart would support the cryptocurrency. When Wal-Mart denied the
claim, an almost immediate 30% rally was erased, also taking
Bitcoin price back down with it. A Darth Maul is all that remains
on the six-hour Bitcoin price chart | Source: BTCUSD on
TradingView.com What remains on the chart on higher timeframes, is
a what the cryptocurrency community has so affectionately dubbed a
Darth Maul candle. Related Reading | Five Bitcoin Price Charts That
Suggest Bulls Have Little To Fear This type of wipeout candle is a
doji, with an extremely long wick in either direction, forming what
looks like the Star Wars villain’s trademark lightsaber. The impact
they can have on investors and traders, is almost as nefarious as
the LucasFilm icon. Is this it for the shakeout, or is there more
pain in both directions to come? Follow @TonySpilotroBTC on Twitter
or via the TonyTradesBTC Telegram. Content is educational and
should not be considered investment advice. Featured image
from iStockPhoto, Charts from TradingView.com
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