After a strong rejection at $14,000, Bitcoin’s parabolic rally has been cut short, and the leading crypto asset by market cap is taking a much needed pause and correction after bringing investors over 300% gains since the start of 2019. But after a flash crash stopped the rally in its tracks, Bitcoin price has been setting lower highs and the market is consolidating ahead of the next major move, and fireworks are expected when it finally happens.
Since weekends often provide little liquidity, it also provides an opportunity for whales to cause extreme price movements in either direction once the order book is cleared out. Holidays also have this effect, and with Bitcoin breaking below $11,000 ahead of the Independence Day holiday weekend when many families are traveling and on vacation, the crypto asset is at high risk of being sent back down to retest lows for support.
Bitcoin Price Drops Below $11,000 Just Ahead of Holiday Weekend
A new study revealed that holidays provide large capital players with the opportunity to easily move prices, and it’s allowed Bitcoin price to soar on recent the notable dates.
However, on Independence Day this past July 4th, Bitcoin price fell over $1,000 from a high of above $12,000 to below $11,000 at the time of this writing, and it could be an omen to the price action in the coming holiday weekend.
All across the United States, families and businesses go on vacation, unwind, and celebrate he nation’s biggest holiday. It’s prime travel time, and a rare opportunity for laser-focused traders to take a break from staring at price charts and catching some rest and relaxation instead of falling knives.
Those that aren’t watching Bitcoin price charts closely may miss an explosive move that sets the trend for the coming weeks and potentially months.
Bitcoin has been said to be on its next bull run by most crypto analysts, however, some do suggest that a pullback and retest of former lows would not only be healthy for Bitcoin, but mandatory for the next bull market to be a long and prosperous one for investors of the emerging asset class.
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If Bitcoin breaks below the previous low of $9,600, lows between former resistance turned support at $6,000 up until the former low could be retested. On the flipside, if the leading crypto by market cap rises above $13,800 and goes straight through the resistance at $14,000 that caused a massive flash crash, Bitcoin will be well on its way to setting a new all-time high in no time and recapturing the interest of the mainstream public once again.
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