- The world’s largest digital coins are trading in a volatile fashion over the weekend
- Bitcoin price moved above the $12k mark to print a 1-year high before dropping $1,500 in 15 minutes
- Ethereum still looks the strongest, having logged a new 2-year high above $400
The cryptocurrency market has been trading in a volatile fashion over the weekend. Bitcoin price moved above $12k for the first time in a year, while Ethereum hit the highest levels since August 2018.
Overall, nearly $1.5 billion has been liquidated on major crypto exchanges after the world’s biggest digital assets crashed in just 15 minutes after printing fresh highs, before eventually pushing higher again.
Bitcoin – $1 billion liquidated in 15 minutes
Bitcoin (BTC) price managed to gain over 4% yesterday to close above $11,800. Buoyed by a strong daily close, the buyers accelerated the rally by pushing the price action north of $12,000, before the world’s largest digital coin retreated in a spectacular fashion.
Bitcoin price dropped from $12,100 to below $10,600 in 15 minutes overnight. Given that the zone around $11,500 is the former resistance – now support – the late BTC buyers used this opportunity to get on the long side. The price action then quickly returned to above $11,000.
There seems to be no clear reason explaining why $1 billion worth of BTC was liquidated in such a short time. One potential justification may be that some of the bigger players used a trip above $12,000 to collect their profits.
Alternatively, this move happened over the weekend when the liquidity is thin, hence explosive moves are more likely to happen in these market conditions.
Looking forward, the bulls fell short of tagging the 161.8% Fibonacci extension line above $12,300. This has been the buyers’ target after clearing the $10,500 resistance, which will now act as a strong support line.
Ethereum logs 2-year highs
It’s been no secret that Ethereum (ETH) price has looked stronger than Bitcoin lately. Given that these two digital assets are closely correlated, Ethereum bulls managed to do what their BTC counterparts failed to accomplish.
One of the potential reasons for this is that retail investors are exchanging Bitcoins to Ethereums. The supply of tokenized bitcoin (BTC) grew more than 70% in July. Hence, nearly $100 million worth of Bitcoins moved to Ethereum in July.
On its way higher, ETH bulls tagged the 161.8% Fibonacci extension line near $415. This signals that Ethereum is in a better form than the world’s largest digital coin by market value. The higher high also meant that Ethereum’s retreat was also of a milder nature.
Similarly, the Ethereum buyers used this retreat to $325 to buy ETH and push it higher again. The zone around $400 is also home to a strong confluence of horizontal resistance levels. Therefore, we can expect this area to be a tough nut to…