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After several, not even weeks, but months of calm, volatility returned to the crypto market. Bitcoin showed character, falling, and rising by more than $1,000 in a matter of minutes. This picture could be seen over the weekend. Quotes:
- at first, they grew sharply, reaching 12 thousand US dollars per coin;
- then fell to 10.5 thousand;
- then immediately rebounded by 11.3 thousand.
Now is the time to analyze the situation and find a possible explanation.As the reason for such a flash mob, traders first of all suspected the actions of "whales" - large players capable of moving prices. But, a little later, another version appeared, the theses of which were voiced by A. Knyazev, director of the brokerage firm Exante:This kind of surge is like runaway leveraged trading. In other words, automated systems for buying/selling crypto assets have contributed. Robots are configured to implement scenarios when prices reach significant levels. And the opportunity to conclude transactions with the attraction of borrowed funds is currently offered by all major crypto exchanges.Mati Greenspan, the founder of QuantumEconomics, shares a similar opinion. In his opinion, such surges are possible for both Bitcoin and other crypto assets. Traders will see more than one sharp sell-off even though globally, Bitcoin with major altcoins is in a bull market.Most likely, there was massive profit-taking by a large number of participants at the level of 12 thousand, which is why the price adjusted so sharply. It is known that there is relatively low liquidity on the crypto market. Therefore, a rather small number of large orders can initiate volatile waves in both directions - bearish and bullish.And what do you think? Bitcoin quotes at each new level will react similarly?