Bitcoin reacted strongly to a flash crash yesterday with a bounce that might offer a glimpse as to where Bitcoin’s final bottom might be. On Binance, the price dramatically fell from $3,807 to $3,677 in the space of a couple of minutes, but instead of settling at the lower price as has happened the majority of the time in this bear market, the price rebounded immediately right back to where it had been. The sharpness of the move appeared to catch many by surprise and reinforced the notion that the current price area is one of importance in Bitcoin’s battle to push back up.
pretty strong rejection of the 0.618 on daily.
bullish scenario might be in play here.
If so, alts should pump.
— ?BenjaminBlunts? (@SmartContracter) February 28, 2019
Explanations Not Forthcoming
Explanations for the flash crash and following bounce have been thin on the ground, meaning that it could have been simple price action or a testing of support levels. As VentureCoinist pointed out on Twitter, the $3,700 level has been rejected four times this year so far before busting through a week or so ago, and yesterday’s activity confirmed that previous resistance has now turned to support. Many have taken this rebound as a bullish sign that the support is there ready to push Bitcoin higher, while others are still cagey about the message it sends out.
— Stoic Trades (@TheTradingStoic) February 27, 2019
$BTC – I’m waiting for one of the three scenarios to play out before entering into a position.
I’m leaning slightly bullish (on getting my shorts filled higher) as long as Red holds as support.
— UB (@CryptoUB) February 27, 2019
Traders Prepare for the Monthly Close
Another potential reason for the sudden volatility is the fact that we are approaching the monthly close, which traditionally has seen unpredictable and volatile activity, and some clearly think that this is on the cards once again. Whatever the reason for yesterday’s activity, it at least shows that the market is becoming less boring, which will please those who enjoy trading such action, as well as algorithms that eat up this kind of price action like whatever algorithms eat for breakfast.