Friday, May 17, 2019
Bitcoin was traded sideways the full day with decreasing volumes. A long squeeze followed early this morning.
Actual support/resistance: $7'000/$8'000
A whale (individual or entity that hold large amounts of bitcoin) placed a large sell order which ended up liquidating long positions on margin trading platforms. One can become liquidated only if leverage is used. At that point, the traders had leverage and placed a bet that the market would go up (long position). If it doesn't happen, the platform closes the position as soon as the loss is equal to the initial capital and the user is liquidated.
Additionally, the centralized exchange platform Cryptopia went into liquidation, not being able to recover from the latest hack it was victim.
The MACD are now converging and the RSI(14) just fell back below the overbought line.
The analysis is based on the latest close price (00:00 UTC time, daily basis)
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