Bitcoin (BTC-USD) hit a new all-time high for the second time this week, and deja-vu occurred with Coinbase (NASDAQ:COIN) crashing and the entire cryptocurrency market taking a quick dive south. However, the whipsaws in price action were nothing compared to what traders experienced on Tuesday.
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At 10:30 EST, Bitcoin moved above the $69,000 level to hit a new all-time high in the $70,000 value area. Over the next 40 minutes, Bitcoin’s price moved lower from $70,000 to $66,109. At the time of writing, Bitcoin has returned to $68,000.
If crypto shorts are trying to scare bulls, not only are they doing a poor job of it, but they’re going to have to contest with the huge amount of institutional buying of Bitcoin.
BlackRock (NYSE:BLK) is not content with just scooping up all the available Bitcoin. In fact, BLK wants to add its own spot BTC ETF (IBIT) to its Global Allocation Fund (MALOX). Interestingly, the amount of Bitcoin in the company’s ETF has ballooned to 187,500 BTC from the original 2,621 it held in early January.
Bitcoin Churns Higher While Oscillators Turn South
From a technical analysis perspective, Bitcoin continues to churn higher while its oscillators begin to turn south. When price and oscillators move in opposite directions, it can often be a warning sign of change.
In this case, it’s known as bearish divergence, and the warning is that the drive higher might be in danger. But regular divergences are notorious for false signals and bringing the unprepared trader into a world of hurt.
