Bitcoin soared above $9,880 during the Thursday trade but left one analyst worried about a potential flash crash.
Full-time trader Salsa Tekila warned that the cryptocurrency’s current price rally could soon fizzle after noticing a long candle wick formation on short-term charts. So it appears, bitcoin suddenly jumped towards a new intraday high of $9,885. But minutes into the newfound highs, it slipped back below $9,800.
The interim pump-and-dump alerted Salsa Tekila about the possibilities of whale manipulation. The analyst said he was exiting all his bitcoin positions because of the “risk of [a] flash dump.”
/7 New yearly highs got sold hard into, I was greedy and didn’t close where I should’ve (9880$).
I’m fully out, risk of flashdump too high from here.$BTC pic.twitter.com/ii5yDBhBJO
— SalsaTekila (JUL) (@SalsaTekila) February 7, 2020
Whale Sells $5 Million worth of Bitcoin
Bitcoin’s $1,000 crash from $9,885 triggered similar bearish calls from other traders. TraderMJ, for instance, confirmed that he was taking liquidity on the possibility of a volatile price reversal. The trader added that he is not going to open any fresh short position, believing that the market is still in an uptrend.
“Not shorting, because I don’t do that in an uptrend, but tethering up and bit and looking to buy back at either 9700 or 9500 ( preferably 9500),” tweeted TraderMJ.
WhaleTrades, a Twitterati who tracks the big crypto transactions, also alerted that a big whale on BitMEX had sold $5 million worth of bitcoin at $9,749.69.
BitMEX $BTC Whale:
$5,000,000 worth of #Bitcoin sold at $9,749.69 12:13:43 2020/02/07
| ???????????????????? EXIT ALL CRYPTO MARKETS— WhaleTrades ? (@WhaleTrades) February 7, 2020
This story is being updated.