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Institutional Demand Pumped Bitcoin

Refresh time:2019-05-14

The large scale buying of bitcoin did not necessarily specify whether the buyers would hold the cryptocurrency. Krüger envisioned a pump-and-dump scenario where a group of coordinated buyers, as mentioned above, would want to exit their bitcoin positions at a higher rate. With no uncertainty, the analyst added that those buyers could also be “strong hands,” those who would hold their bitcoins for a tremendous timeframe.

“It is valuable to attempt to ascertain if these new buyers represent long term positions or hot/fast money (which goes in and out, or rawly speaking, will dump on newcomers),” said Krüger.

The bitcoin price underwent a natural downside correction this Sunday, dropping more than 10 percent from its session high towards $7,581. Nevertheless, the market did not notice any further corrective action, evident with it closing – again – above $7,000, a crucial level, during today’s trading session.

bitcoinBitcoin Retesting $7,000 as Support | Image Credits: Alex Krüger
“I would usually be looking to short this pullback [bearish correction] higher,” said Krüger. “However, to me, this is a *longs only* situation. If the price gets there, the 6400 area is, in my opinion, ideal for longs.”