Human beings are emotional, and that’s especially so in crypto markets. Round numbers are idolized much more than in traditional finance, and investors and traders are susceptible to panic-selling if price gains stall near a number with several zeros at the end.
At the same time, some traders look to front-run the exodus, stacking order books such that it becomes a self-fulfilling prophecy.
Take, for example, bitcoin (BTC), which has again drawn up short at the so-called psychological $100,000 sell wall. While earlier analysis has pointed at profit-taking, capitulation from short-term holders and just not enough demand to take bitcoin higher, it’s interesting — possibly even useful —to know if there’s a recurring pattern.
An analysis of historical price movements based on data from Glassnode shows it usually takes multiple attempts to breach these psychological barriers. The analysis looked at trading patterns when the bitcoin price came within 2% of a multiple of $10,000.
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We współpracy z: https://www.coindesk.com/markets/2024/12/03/bitcoins-100-k-psychological-barrier-may-require-multiple-attacks-van-straten
