It’s a tough day to be trading crypto, it seems, with at least one Bitcoin trader comparing the $185 billion cryptocurrency’s price charts to a “penny stock .”
Saying the four-hour charts were looking grim for cryptocurrency, Jacob Canfield complained that he couldn’t seem to make out this morning.
Responses were to his tweet were mixed.
At least one other trader thought there might be a silver lining:
There’s always a contrarian in crypto, though:
It’d be hard to predict another bull movement at this point, with the recent one failing so miserably.
Certain traders had called the overbought conditions and signaled that a lot of the movement was “emotional,” but some bulls carried on at their own peril.
The recent market activity might rightly be referred to as a “bull trap.”
Whether or not the investigation into BitMEX and other negative news played any role in the meltdown has not yet been determined by anyone.
For all its shortcomings, Bitcoin has wide and deep perceived liquidity.
True liquidity is something we’ve not seen a real test of. How many BTC could actually fetch the current price of over $10,000?
Moving forward, it will become more and more critical that real exchange data is secured. Without it, traders may mistakenly believe the market to be much stronger than it is.
Some traders expect extreme volatility to return to Bitcoin. If history repeats at all, we may see a long period of trading in tight ranges.
Whatever happens, we have to wonder how true it really is that BTC acts like a “penny stock.” There’s certainly a lot more money moving the levers in crypto markets, but they also behave wildly. People are often willing to cut and run, just like with under-researched penny stocks.
If it is a penny stock, though, it’s one of the most expensive and successful such stocks in the history of the pink sheets.