Bitcoin dropped below $40,000 briefly on January 10 making huge volume spikes. Yesterday something similar happened. While Bitcoin only moved a $1000, what caused huge volume spikes?
Bitcoin price today is $43,751.91 USD with a 24-hour trading volume of $29,292,942,028 USD. Bitcoin is up 4.55% in the last 24 hours, with a market cap of $828,089,975,212 USD. It has a circulating supply of 18,926,943 BTC coins.
The support of $40,000 was too obvious and it was clear that huge stop losses will be waiting below this area. So, whales took over and faked the short trend. This liquidated many high-risk positions and many stop losses were collected there causing volume to spike so high. Since Bitcoin was ranging between $42,000 and $40,000, whales again invaded and moved the prices up to $43,000 liquidating the short positions. This is why multiple indicator affirmation is required to enter a position. After some bullish maneuvers, Bitcoin is now ranging between EMA 100 and EMA 200 on an hourly timeframe. BTC has major resistance at $43600, fib 1.272, and the support level is at $40,000, fib 0.236.