Bitcoin (BTC) went through significant intraday price action, hiking up above $7,500. BTC started off from below $7,200, before recovering rapidly. At one point, prices touched $7,700.
However, despite the rise to a higher range, the BTC price did not pick up with a further rally. Despite predictions that a hike above $7,500 could trigger another rise, BTC remains weighed down. Toward the end of the day, BTC shed $200 within an hour, stopping around $7,300 once again.
The most probable reason was a short-term buying pump, which boosted the price of BTC through USDT:
https://twitter.com/DeepDarkEye/status/1202346178395955200
So far, there is no reason for the buying, with the exception of speculation. The general mood still sees BTC being sold at current prices, with the expectation of a bigger slide and testing new lows.
BTC trading volumes expanded to above $22 billion’s equivalent in the past 24 hours, showing the potential for further price moves. BITMEX volumes expanded to above $3.32 billion in the past 24 hours, with deep liquidity. At the moment, BTC price setting is happening partially on futures markets.
The Bakkt futures market also picked up, with volumes below the record, but above those on ordinary days. With higher BTC volatility, futures immediately picked up to make up for gains and losses.
https://twitter.com/BakktBot/status/1202488988679974912
The price fluctuations happening in the past day also led to futures liquidations. BTC trading has the potential to cause short positions, liquidated by a more significant intraday price rally.
The Bitcoin fear and greed index remains at 21 points, still in the extreme fear territory, dropping from 24 points on the heightened volatility. The BTC market price dominance is at 67%, slightly higher as selling affected altcoins as well.
The share of USDT trades remains in its usual range at 75%, with BTC spot markets spread among a multitude of crypto-to-crypto exchanges. Direct USD volumes sank to 8.16%. The turnover of USDT also increased, from 490% in the past days, to above 549%, signalling a more active turnover.
BTC remains unpredictable, and may take a swing in either direction, liquidating bearish positions while keeping the downtrend in the short term. Still, prices are unpredictable and investing in BTC is inherently uncertain at any moment, despite models and predictions.
