@cryptovestor I really don't think this recent btc pump had anything to do with pure market FOMO. It was a confluence of events but primarily:
- A MASSIVE Short Squeeze; the market had an all-time high of shorts vs longs on margin trading platforms, which is an event that is likely to liquidate a ton of people, force stops to trigger, and instantly flips the market to the upside. Shorts instantly become buys as they cover as the price goes up, and then price sky-rockets quickly, since a vast majority of the activity is being triggered by price levels and executed by machines.
- Technical Analysis was telling you a highly volatile move was coming up (look up TheChartGuys for their levels to watch) which was leading into that pump for weeks. Traders all over the world were licking their chops waiting for the breakpoint. People put in their stop buys and stop sells and were looking for the move to happen; when the price triggers are met, INSTANTLY money is triggered with market buys, even on apparently small movements, they just happen to be massive hinge points. These orders stacked up heavily on the orderbook in the leading days before the April pump as the equilibrium pattern tightened up. Every trader in the world was watching that pattern.
- RSI (relative strength index) was closing in on all time lows (at least within the last year or two) and even on the weekly was closing in on clearly oversold. This was a clear buy in point for many (in retrospect) since oversold bounces have been the single most reliable thing bitcoin has done in the past 4 months.
Throw Whale OTC news in there, and some tax shit, and suddenly this is an entirely different story about what happened. Do not believe the conspiracy theories. A vast majority of the rest of the noise out there is just to mislead you, or is clearly put together by people who have no business making any financial recommendations of any kind.
Edit:Absolutely not a knock, only a comment about the news media marketplace in general; it is a shell game designed to self reinforce your own beliefs, not give you the news. Thanks @cryptovestor.
@muppetdingdong where do you get the info on the number of short/long contracts are placed? I've not been able to find it.
Tradingview.com (start an account if you don't have one, you're welcome.) > Indicators > Search > "btc shorts" You're looking for BTCUSD longs vs Shorts. Or you can just search btcusdshorts in the symbol field. Google has a fair bit of information about it as well. Carter Thomas of Coin Mastery talks about it a good amount fairly regularly, quite a few other youtubers had been bringing it up as the shorts started getting into all time highs.
Sweet. Appreciate you taking the time to explain that. Thank you @muppetdingdong.