Bitcoin Rally Continues Despite Price Drop to $112,000
Crypto analyst Stockmoney assures that Bitcoin's rally isn't over despite its recent drop to $112,000. He explains the cycle as follows:
- Price increases while large investors (whales) take profits.
- Further price increase on low volume as retail investors lock in gains.
- This leads to many positions with paper gains and open futures, causing a lack of liquidity.
- Low-volume uptrends result in mass liquidations, which free up liquidity.
- Market makers profit from this cycle, and whales buy dips.
The price drop followed a high of around $117,000 due to a Fed rate cut, marking the largest liquidation event for long positions this year. Analyst Ali Martinez suggests Bitcoin could break out to $130,000 after forming the right shoulder.
Another analyst, Titan of Crypto, notes Bitcoin is retesting the Kijun level at $112,600, potentially indicating a new all-time high. Currently, Bitcoin trades around $112,600, according to CoinMarketCap data.