The Bitcoin price has plunged nearly 34 percent from its high of $13,851, formed on June 26, but it is still up almost 158 percent year-to-date. ( Among the top 3 coins: ETH and XRP, Bitcoin’s performance is unmatchable.)
So, the question is which way is Bitcoin going to move given that the price has retraced more than one third from its recent high?
In traditional markets, when the price retraces 10% from its previous high, it usually means correction, and a 20 percent drop stipulates that we are in a bear market. But, this principle cannot be applied in crypto markets, where gains of 158 percent can be achieved in six months.
In order to analyze this and find out if bulls have lost control of the price, one can use the golden principle: look at the current price movement and compare it with the major moving averages. However, before I do that, it is also important to keep an eye on the OTC market and see what kind of orders there are and most importantly, who the buyers are.
During the peak, when the Bitcoin price touched $20,000, the premium for the Bitcoin price in the OTC market in Dubai was nearly 20% on top of the spot price. Sticking to the same measure,
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