Arca an investment firm that tracks BTC trading had come out with evidence that recent past week BTC price drop had to do with desperate shorts trying to push prices down on Biden's push for taxes on the rich, but had failed on the premises that there is not much of a supply of BTC to buy. Even when prices were low and falling there were not enough BTC being sold in the market.
"If anything, it was more of a buyer’s strike than a seller’s parade. [...] These types of fake selloffs happen all the time in other semi-liquid asset classes."
Limited BTC traded on exchanges
Everyone who follows BTC is well aware there can only be 21 million tokens minted. As of early 2021 NY Times mentions that out of the current 18 million BTC in existence about 20% are locked up due to owners forgetting their wallet keys. NY Times Link Source Here. Carve out institution and retail diamond holders too basically there is less than half a million BTC being traded daily in all exchanges. Chart below by Statisita shows that in middle of April there were about 300k BTC traded daily.
BTC Short Squeeze
When supply of an asset is limited the price will likely rise. This is a supply and demand effect. The demand is increasing as there is less and less supply. For those who were short prior to last weekend they had hope to buy back lower are likely now stuck with a lose and as BTC continues to gets bid up the losses for shorts will continue to rise.
Cointelegraph's Source Article
Indeed there is proof in the past couple of days that over the weekend selloff has now turned into a massive buying spree for BTC. So much buying that it basically pushed BTC prices back to over $53k and continue to rise.
With force buying from short squeezes and the still strong diamond hands holding majority of BTC it only leaves us to wonder how much higher will BTC prices go from here?
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!wine and !LUV
Thanks !wine and !LUV
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That’s what we in the biz call a shakeout. BTFD
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Hi @mawit07, you were just shared some LUV thanks to @logicforce. Holding 10 LUV in your wallet enables you to give up to 3 LUV per day, for free. See the LUV in your wallet at https://hive-engine.com or learn about LUV at https://peakd.com/@luvshares https://ipfs.io/ipfs/QmUptF5k64xBvsQ9B6MjZo1dc2JwvXTWjWJAnyMCtWZxqM
These small dips are part of the game and most of the people don’t worry about these as they believe in BTC. Just because BTC have a solid background backing of a lot of people 👍