BTC / USD, TradingView chart
Trader Sam Trabucco noted that the movement was provoked by aggressive buyers, who probably opened long positions with a large leverage. As soon as they came across resistance in the region of $ 10,000, a cascade of liquidations began on BitMEX, at the moment dropping the price to $ 9500- $ 9600.
The price got briefly above 10k on the back of lots of really aggressive, likely high-leveraged buyers (and the mini-string of cascading liquidations they brought with them).
- Sam Trabucco (@AlamedaTrabucco) June 10, 2020
Hilarious whipsaw action clearing out BITMEX degenerates.
The liquidations will continue until morale improves. pic.twitter.com/cdBOd1r0fw
- Matt Ahlborg [UsefulTulips.org] (@MattAhlborg) June 10, 2020
Some analysts have linked the sharp price movement with a statement by Fed Chairman Jerome Powell. The US central bank left the key rate at 0-0.25% and suggested that this state of affairs would continue until the end of 2022 due to high unemployment. Powell emphasized that the decline in US GDP in the second quarter may be a record.
Federal Reserve Board and Federal Open Market Committee release economic projections from the June 9-10 FOMC meeting: https://t.co/FOKDBUS3jd
- Federal Reserve (@federalreserve) June 10, 2020
$ BTC really trying to break through after that FOMC statement. Bit of a delayed reaction, but there's not really a more bullish macro catalyst than zero rates through 2022.
Would be pretty disappointed if this didn't start aggressively going higher here. pic.twitter.com/e008sqQbHF
- Ceteris Paribus (@ ceterispar1bus) June 10, 2020
Do you think the price will go above 10000?
