Bitcoin whales likely seeking liquidity as the price dives towards $8,000.
Bitcoin must keep above the Moving Averages and $8,000 to encourage fresh demand and a refocus on $9,000.
Bitcoin has taken most people in the cryptocurrency world by surprise following the unexpected move on Friday. The digital asset initially broke out in an impressive move easily smashing through the barriers at $8,600 and $8,800. However, the fireworks did not last, the bulls found themselves in a devastating bull trap. Bitcoin chopped off gains erasing most of the progress made in the last two days. According to a crypto trader, Scott Melker:
“I don’t think whales stopped hunting. I just think they started hunting for liquidity to sell and short, and the $8800 area was a predictable area to do so….