March 4, 2021

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Reasons why the price suddenly soared to 7300 USD

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Reasons why the price suddenly soared to 7300 USD

Cointelegraph information portal came up with an interesting analysis of why the price of the king of cryptocurrencies jumped to $ 7,300 yesterday during the afternoon. $ 90 million of those who opted for short were put into liquidation.

 

Analyst Joseph Young puts tremendous pressure to blame purchases using the lever. Using the lever, traders buy on debt that they later have to pay from their earnings. Shortly before the shot, almost 60% of the long positions and only 40% of the short positions were on the market. As the price went up, the shorts were forced to sort their positions by buying to minimize their losses.

 

It is a chain reaction. Nobody sells and everyone buys. This trend broke down to $ 7300, when most began to take their profits.

 

Reasons why the price suddenly soared to 7300 USD

 

The article also refers to an analyst with the nickname Flood, who on Twitter account excited to higher prices already after bouncing from strong support to $ 5900.

 

The lever and Futures phenomenon came into cryptocurrency during 2017, largely behind a huge price increase, which halted to $ 20,000. Futures have since introduced and exchanges such as Binance.

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