Crypto markets run 24/7. But price action is more relevant in certain times.
Most traders use candlestick charts to track price changes. Created in Japan more than 200 years ago, a candlestick is defined by four pieces of information — the highest and lowest price, and the price at the open and close of the respective trading period.
Minutes and hours start and end at the same time around the world, however, days and weeks don’t. So, despite crypto markets being open all day and all year, the standard for the open and close marks is the ‘Coordinated Universal Time’ (UTC) time zone, which is currently one hour less than ‘British Summer Time’ (BST).
Some exchanges like Winklevoss’s Gemini, don’t follow the standard. Nonetheless, what’s really key is the importance of the first and last moments of a given trading period, as they better depict support and resistance than highs or lows. Commonly, these are more accurate in longer time-frames such as the daily and the weekly, as traders historically used these moments to get in and out of large positions in order to influence the charts.
Such manipulation continues to happen in crypto markets. Possibly as some may see it as a new window of opportunity to capitalise on the momentum of cryptoassets following news? Especially in the top cryptoassets, which are more difficult to pump and dump with a couple of Twitter ‘shills’. Eight hours ago large ‘whales’ pretended they were impressedwith the narrative surrounding Consensus. Soon after the weekly close, they pushed down Bitcoin’s price by 3.5% within a couple of hours.
It still closed above an important support level but it signals a counter trade opportunity, as everyone is retweeting the historically irrelevant correlation between bitcoin’s price and Consensus — the Coindesk conference that “brings crypto to the masses”. It’s not about it being a non-event but about key market indicators being quite bearish.
Note that previously, such hype around reputable conferences took a long time to materialise. Thus, there are no logical reasons to expect anything in the short-term. We hope that by now it’s clear to see how easy it is to influence investors’ emotions. Look at how the market overreacted to last Friday’s news that Upbit, a major Korean exchange, was raided by the police. For now, the only logical thing to do is sit back and watch Consensus’ live stream!
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Would you like an alternative to Swift’s international transfer system? Germany’s Bitbond is an online bank that uses Bitcoin to transfer loans around the world.
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