Bitfinex Limit Order Book Hints A “Buy The News” Event for Bitcoin (BTC)

Bitcoin (BTC) fell over 10% on Monday as the crypto market registered another flash crash in December. BTC price fell to a daily low of $45,894 before recovering above $47K. However, it lost $47K support again early Tuesday and was trading at $46,664 at the time of writing.

Source: TradingView
The market slump was attributed to a recent class-action lawsuit filed against Tether and its entities in a New York court over allegations of fraud. Another key factor that many belive is playing a key part in the recent crypto market slump is the upcoming Fed meeting on Wednesday. The U.S consumer inflation hit the highest in four decades and the upcoming fed meeting is expected to announce the faster tapering of bond purchases. This could potentially trigger an upswing in inflation hedges like gold and Bitcoin.

Gold prices have already started to show an uptick and the stock market is recovering as well, and crypto could potentially be the next.

Bitfinex’s Bitcoin Limit Order Book Hints at “Buy The News” Event
Despite the current market slump Bitcoin whales have continued accumulation across the board. Bitfinex crypto exchange’s limit order book indicated that the retail market is selling in a panic ahead of the FOMC meeting while whales have continued their accumulation. The FOMC meeting could be the potential trigger point, and experts belive the current market is the perfect “Buy the News” scenario.

 

The traditional expression is “Buy the rumor, sell the news.” That means traders purchase based on positive rumors, then sell when the actual news is released. In this case, “buy the news” means that everyone already knows what’s coming, and it is already priced in the market(s). Currently, the market is overpricing in fear and selling off as a result. When the FOMC meeting occurs and uncertainty is removed, the market may react favorably even if at a headline it’s ‘bad’. It’s not about the actual news, but the delta to priced-in expectations

The post Bitfinex Limit Order Book Hints A “Buy The News” Event for Bitcoin (BTC) appeared first on Coingape.

Source: https://coingape.com/bitfinex-limit-order-book-hints-a-buy-the-news-event-for-bitcoin-btc/

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