A bitcoin analyst and blogger confirms that the recent rise in the bitcoin price was not due to any kind of organic investor flow.
My theory was that crypto whale traders swooped in late last year not merely because of the 85% decline in BTC but because of a key technical trading factor – and nothing more.
Willy Woo confirms that the recent price rise was driven more by whales buying and trying to manufacture a short squeeze.
This is both good news and bad news for bulls.
GOOD NEWS FOR BTC BULLS
The good news is that bitcoin will behave like most low-float illiquid stocks.
With low-float illiquid stocks, the limitation on share count means that the stock will always be subject to high levels of volatility and large spreads on the bid-ask.
It also means that any attempt to short the stock down comes with inordinate risk considering a sudden surge in buying will crush the short-sellers.
With bitcoin, there will always be a certain number of short-sellers, and that means short squeezes like this are going to be a more likely occurrence than not. That should theoretically provide a level of price support over time.
https://www.aiatoken.com/
