Rupert Douglas, head of institutional sales at brokerage Koine, believes that the movement’s intention was to wipe out some traders in the derivatives market. “My take is that this sharp rejection is a shakeout of the weak longs,” said Douglas.
Such a situation would only make bitcoin’s recent performance look even better comparatively. Although not exactly a smooth ride, since the start of May, bitcoin is up over 14%, outperforming all the major stock indices. Only the Nikkei 225 is exceeding 10% in the green during the same time, according to data compiled by CoinDesk Research.
A quiet day for bitcoin might just be the platform for another price breakout, said Henrik Kugelberg, an over-the-counter cryptocurrency trader based in Sweden.“I have had massive signals of an imminent surge in bitcoin the last couple of days”.
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