Bitcoin price has recently been following an uptrend after the coin retested bear market lows at $3,350, bouncing off support at the 200-week moving average. Even the fears over Bitfinex’s insolvency or Tether FUD were insufficient to make a major pullback besides the quick decline Bitcoin immediately rebounded from.
“Big Money,” as a Bitcoin trader calls it, are “net long,” and would not allow bulls to purchase dips until they are ready to sell. Moreover, per the trader’s previous analysis, he thinks $10,000 is when re-accumulation and distribution will happen.
Bitcoin Bravado lead analyst and prominent crypto trader Bitcoin Jack Sparrow shared his latest Bitcoin market analysis after the digital currency went parabolic, a bear market ensued, and the bubble popped.
According to the trader, the trading volume analysis since BTC bottomed last December through April’s one-hour surge which sent Bitcoin’s price skyrocketing over $1,000 within an hour, indicates that “big money is net long.”
Grey boxes are liquidity zones
Volume analysis suggests big money is net long
Big money won't let you buy dips until they sell you their position
There is no denying we at least fill the first grey box
Be smart, buy when they want you to sell pic.twitter.com/BGkiNUCfYT
— Bitcoin 𝕵ack (@BTC_JackSparrow) May 1, 2019
The trader added that “big money won’t let you buy dips until they sell you their position.” The claim could explain why Bitcoin price has not dropped, even though indicators expect consolidation or decline, and following prevalent fear, uncertainty, and doubt throughout the cryptocurrency market because of the accusation of the New York Attorney General’s office that Bitfinex used Tether reserves to conceal the $850 million loss in funds.
Jack emphasizes a “liquidity box” in grey, indicating the two zones in which notable price action will occur. One is above, at $6,000 resistance that formerly appeared as seemingly unbreakable support throughout last year, before it broke in November.
The second zone, is below us, back where the first breakout in April took place, backing up analysts who think Bitcoin will make a run for $6,000 or $4,200 next. Both price targets were previously listed as choices in a Twitter survey which was divided 50/50.
Change my mind.
Won't be tomorrow, we'll go sideways, up and down, but that's where distribution/re-accumulation will happen.
Just saying 🧙♂️
That volume… 👀 pic.twitter.com/WfqAzCwhvp
— Bitcoin 𝕵ack (@BTC_JackSparrow) April 8, 2019
Per a pinned tweet from April 8, Jack expects Bitcoin to revisit $10,000 but is unsure exactly when. He believes this is “where distribution/re-accumulation will happen.”