Cumberland, a cryptocurrency OTC desk backed by trading firm DRW Holdings, has some interesting findings to report in the aftermath of what can be described as a green week for Bitcoin.
Bitcoin (BTC) managed to rally 20 percent within one hour on April 2, not only raising eyebrows in the cryptocurrency community but also drawing the attention of the wider public. According to Google Trends, search queries for Bitcoin increased from an index of 30 to 100 following the surge.
The media has been speculating on several potential causes for the surge; however, Cumberland has shared some insights from its data analysis. The desk saw more than 10 separate bids of more than 1,000 BTC per order within an hour during the late Monday evening. The OTC desk released a post-trade analysis of that night’s Bitcoin rally, stating that the volumes appear to be actual buyers.
Desk Update: The post-trade analysis of Monday evening’s price action revealed a series of large bids (>1,000 BTC per order) within a 1 hour span, which appear to be actual buyers vs. forced liquidations. pic.twitter.com/UiuHLoCbPr
— Cumberland (@CumberlandSays) April 4, 2019
Bitcoin’s compressed price action in previous months has seen many analysts hint at an imminent and violent move. The execution of several big orders like the ones reported by Cumberland could have ignited a wave of buying signals for trading algorithms, which ultimately followed suit.
Previously, Cumberland noted that, for the first time in eight weeks, the price of Bitcoin had risen by more than 10 percent — while switching its focus on the next resistance level at $5,500-$5,800.
DRW Cumberland has been operating since 2014 and offers its trading services for over 40 cryptoassets. The company also provides institutional-grade reporting and market insights to its customers.
What do you make of the insights from Cumberland? Is this a bullish sign if whale-size buy orders start popping up, or is a major shakeout imminent? Let us know what you think in the comments below!
Image courtesy of Twitter.