Last 5 weekdays were remarkable for two reasons. There were huge panic selling and finding BTC price support after Monday breakout.
During last few weeks analytics from different countries said that the cryptomarket had bottomed and Bitcoin’s price likely wouldn’t get lower. Honestly, I wasn’t so sure that Bitcoin’s price wouldn’t dig deeper. The reason I’d being doubted was a low trading volume. It’s comparatively easy to manipulate (and to drop) Bitcoin’s price under such circumstances. For example, that scenario was applied on October 11.
This week we witnessed an event, which, in my opinion, was a clear sign of Bitcoin reliability. Rumors about Tether triggered market activity. Traders began panic selling of the crypto assets. However they preferred to buy Bitcoins instead of another stablecoins. Just compare data.
Around 5:00 am UTC traders were aware about USDT rumors. During next 4 hours they were actively buying BTC, Paxos and TrueUSD. At some moment prices at PAX and TUSD on Binance peaked over USDT at 20% and 24% respectively. Sounds crazy. In this case more important is trading volumes. Trading volumes of PAX/USDT and TUSD/USDT were $4.5 mln and $10.7 mln respectively during 4-hours period. TUSD/BTC market achieved $13.2 mln level, and PAX/BTC market grown to $2.8 mln. However, BTC/USDT market volume was astonishing amount of 40,314 BTC (~$280 mln). That means, in time of uncertainty traders invested in Bitcoin approximately 10-fold more sum, than in stablecoins. Unfortunately, I don’t know how many money were withdrawn. But I guess it’s safe to say that people really believe in the main cryptocurrency.
Monday’s rally created new uncertainties regarding price support. Finally BTC found acceptance around $6,500 on Friday. According to the MACD indicator, the bullish trend has slowed down. And that’s good news, because the price would stay the same on the weekend.
Disclaimer. I don’t promote any digital assets, crypto exchanges or services.