Bitcoin experienced a massive bout of volatility this morning that led it to plummet to $9,000 on popular cryptocurrency trading platform Bitmex before bulls stepped up and catalyzed a massive rally up to highs of over $9,500.
This immense volatility has resulted in Bitcoin sitting at its recently established 2020 highs and has led analysts to note that the crypto may now see some consolidation before it continues to climb higher.
Bitcoin Begins Stabilizing at $9,500 Following Massive Bout of Volatility
At the time of writing, Bitcoin is trading up 1% at its current price of $9,475, which marks only a slight decline from its daily highs of $9,550 that were set at the peak of the rally seen by the cryptocurrency earlier today.
The massive volatility today also came about in tandem with Coinbase Pro going offline for maintenance, with the decline in volume resulting from this potentially opening the gates for large market participants to manipulate the markets.
It does appear that Bitcoin and the aggregated crypto markets have been able to stabilize, however, and that this movement ultimately favored the cryptocurrency’s bulls.
Alex Krüger, a well-respected economist who focuses primarily on cryptocurrencies, spoke about the recent volatility, noting that BTC just made a “5% intraday round-trip.”
“BTC just experienced a 5% intraday round-trip. Narrative seekers usually only care about finding a narrative if price closes significantly up or down. Can bet that if $BTC were to close today below $9000 everyone would be looking for an explanation,” he explained.
Although Krüger does not believe that there is any specific narrative that can accurately be attributed to this movement, the fact that it almost occurred exactly in tandem with Coinbase Pro going offline does seem to suggest that there is a correlation between these two events.
In the near-term, HornHairs – a popular crypto analyst on Twitter – explained in a tweet that he is closely watching for BTC to break below its previous range highs at $9,400 before he is confident in shorting the crypto.
“BTC short update: Out of this for some pocket change. Feels more like gambling than trading an edge here. Letting things fizzle out for now. Solid day no need to get greedy on a bunk setup. Want to see a breakdown below previous range high before confident in downside,” he explained.
How the cryptocurrency trades in the coming few hours should offer deeper insights into the significace of this latest movement.