“They will eventually be filled, which is why I think entering long term buys above 13K is a terrible idea,” the trade wrote.
“Until BTC closes and holds above K, I’m not betting on ATH test,” he said. “Paying close attention, IF (ONLY IF) I trigger short set-ups in the coming days around or above that level, I will be inclined to hold as a short swing. I could see the corn go as low as 8k area worst case.”
Another daytrader reminded the community about the missing candles on the CME Bitcoin Futures chart near K. The community believes that Bitcoin fills those so-called gaps 98-99% of the time. That means the crypto could correct lower towards the ,000-region.
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Tether Not PayPal
But at least one of them disagreed. In a tweet published earlier Thursday, the pseudonymous analyst claimed that Bitcoin went upwards because of an abundant supply of Tether’s stablecoin, USDT.
“New tether printed –> bitcoin goes up; tether capitalization drops –> bitcoin drops too; tether seems to be leading,” the analyst wrote.
“I don’t believe that the recent BTC rise occurred due to the PayPal news,” he said. “It more looks like a “Xi-pump” in October 2019.”
With “Xi Pump,” the analyst was referring to a Bitcoin price rally in October 2019. Back then, China’s premier Xi Jinping endorsed the cryptocurrency’s underlying blockchain technology in a public event. That shortly followed a 40 percent price surge, a move that later reversed its direction entirely amid renewed sell-offs.
On Wednesday, Bitcoin logged a supersonic bull run, hitting ,000 for the first time in 15 months. The rally started after PayPal announced its foray into the cryptocurrency sector, leading analysts to believe that the 8 billion global payments firm drove the latest Bitcoin adoption.
Bitcoin-Tether correlation, as presented by Crypto Hamster. Source: USDT on TradingView.com
The pseudonymous analyst noted that the PayPal pump is no different than the Xi one. They both coincided with an increasing supply of USDT. It means that the capital that was already inside the cryptocurrency market got channeled towards Bitcoin. No significant money entered the space from the outside.
Bitcoin was trading at ,790 at the time of this writing, down 3.5 percent from its year-to-date high.
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