Bitcoin has taken a bit of a hit after pushing that $10,000 high. After touching that critical resistance level, BTC dropped back to the $9,000 mark before returning to a more stable level just under $9,400.
The apparent recovery suddenly changed with a surprise crash back down towards $9,000. This is no big deal in its own right, though it does mean bitcoin posted a lower high before dropping again. That’s against the backdrop of higher highs we’ve seen recently.
The move takes place at a time when significant rises in price might be expected. The Consensus conference will take place in New York next week: https://www.coindesk.com/events/consensus-2018/
Consensus is a huge blockchain summit. The awareness it brings to bitcoin typically prompts a bump in price – and this year attendance is expected to be higher than ever. So the price action at this point is interesting. It might be a ‘sell the news’ fall. That is, if everyone is expecting the price to rise, it is actually more likely to fall because buyers have already made their move. Under those circumstances, smart traders will unload early because they know so many other people will be playing the same game – the one who sells first wins. Alternatively, it might be good old manipulation: whales pushing down the price to take advantage of temporarily depressed prices and stocking up before a rise in price next week.
Expectations are certainly high, with some prominent voices like Fundstrat’s Tom Lee predicting a major post-conference rally. ‘In 2017, attendance at the conference doubled from the previous year. The value of Bitcoin increased by 69 percent during the meeting. In the two months after Consensus, Bitcoin was up by 138 percent. Lee is expecting this pattern to hold, believing that the results this year might even be more significant. For one thing, the 2018 Consensus conference is expected to gather twice as many participants as last year’s event. More than 2,750 people attended the summit in Manhattan in 2017.’ (https://bitcoinist.com/analyst-predicts-consensus-conference-will-trigger-bitcoin-price-increase/) Lee is predicting an incoming all-time high and $25k by the end of the year.