Bitcoin may be priming itself for a big weekend price swing
Weekends often herald big moves for Bitcoin, and current conditions are lining up for it.
Bitcoin may be getting itself all geared up for a big weekend price swing, based on the confluence of two factors.
The first is that historically the weekends are when the Bitcoin markets go off. They've also tended to be characterised by lower total trade counts but higher volumes, implying that that's when the whales start taking over more of the trading.
With the number of whales on the rise and recent incidents suggesting that the whales are running the show here, there's reason to believe that the weekends will continue to be prime time for the cryptocurrency markets.
The second is that Bitcoin has had a pretty quiet
week month, and apart from a couple of quick peeks above $10,000 and below $9,000, it's just been chilling in that same price range for a while, even as volumes trend on downwards.
If there's one piece of common cryptocurrency market wisdom, it's that this kind of slow, tight trading usually gives way to drastic movements.
As we can see below, the big push above $10,000 on 2 June, and the sudden 11 June price dive from $9,900 to $9,300, and the subsequent second drop from $9,400 to $9,000 on 15 June, all came on at times of low volume.
Bitcoin prices and volumes over the last few weeks have settled into a fairly graceful rhythm, alternating between the mesas of big market-moving trades, and the valleys of people realising that it's not "the big one".
Of course, as pleasant as it is to hazard predictions just by watching the landscape roll on by, there are other factors in play too, such as the impacts of the growing cryptocurrency derivatives markets, which are not necessarily reflected in spot market trading volumes, and the returned correlation between stock markets and cryptocurrency markets in the last few days.
Disclosure: The author holds BNB, BTC at the time of writing.