$30 Million USDTBitcoin markets have been in disarray, registering four consecutive weeks in the red. The most painful one for traders was last week when Bitcoin’s price tumbled from $8500 to $6900. At every subsequent drop, traders might have hoped for a relief rally, however, Bitcoin continued its descent and touched the $6500 mark at the open on Monday. The price hadn’t spent much time below $7000 and quickly recovered, regaining critical levels of $7100 and $7200. However, as it often occurs when the Bitcoin price drops, a $30 million worth of USDT has been moved from the Tether Treasury to cryptocurrency exchange Bitfinex, as reported by the @whale_alert Twitter account.
Bullish Reversal or Fake Bounce?The price action over the past week has killed a lot of the enthusiasm for bullish investors. None of the support levels have acted as support, and the sentiment is quickly changing to bearish with some targeting $5000. Nonetheless, a quick price recovery might spark some optimism into Bitcoin markets and lower targets could be out of reach. Conversely, the demand can slowly dwindle and the bearish market structure could set in and send the largest cryptocurrency even lower. When whales buy into the market, even smaller price jumps can result in a short squeeze, when short positions must be filled by investors. This can cascade into sudden rises in the short term, kicking off the fear of missing out (FOMO) for other investors as well. Whether this will play out like this, or demand dries up will be evident over the course of the upcoming week.
Images are courtesy of Shutterstock, Twitter.
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