Bitcoin price soared past $31,000 after XRP scored a massive win against the SEC. Seems like the 13th and 14th of every month has something to offer the crypto world – whether good or bad.
The crypto community was full of activity on June 13, 2023, at 15:00 PM UTC, when Judge Analisa Torres delivered a summary verdict on the Ripple vs SEC lawsuit. The price of XRP shot up over 50% hours after the judgment was delivered. Other tokens and coins followed suit, and BTC was not left behind, rising 4.5% in 3 hours.
Previous Bitcoin Analysis
In last week’s analysis, we put out two theories for Bitcoin’s future movement. While the XRP case win is good for the industry, we are afraid its impact on BTC was less than satisfactory. This is evidence of heavy price manipulation.
We theorized that BTC had two possible fates: Bearish or Bullish. Each of those fates depended heavily on the Market Makers’ mood. It seems the market is following the bullish route, though not exactly. Smart money can’t be seen to be actively and clearly manipulating the price of Bitcoin. Therefore, they have to let the price of BTC rise a bit on this news, but not too much.
This can be seen in this week’s charts where BTC’s price rise was peanuts and less than expected with this kind of market-impacting news.
Bitcoin’s Price Prediction
This is a daily chart for Bitcoin and it shows an interesting formation. The end of the downtrend which was followed by an impulse move of consecutive green candles marks a supply zone. This means that many retail traders have set their stop-loss orders at this zone and Smart Money must drive the price down eventually to hunt this liquidity before resuming the upwards trend.
The general market trend is upward, and one rule of trading is, “Never trade against the trend.” When the general trend is upward, we look for Supply Zones to set buy limit orders. However, when the general trend is downward, we look for Demand Zones to set out sell limit orders.
On the 15-minute chart, the same situation is playing out, but on a smaller scale. An impulse move happened right around when the XRP ruling came out, causing the BTC price to spike. It is possible smart money had insider information about the ruling and used the opportunity to liquidate the huge amount of stop loss set between $30,800 and $31,000.
We expect the price of BTC to fall back to $30,600 in the short -term and to $26,000 in the short to long term. Note that the fall to these figures may happen in a flash-crash fashion, and not necessarily a slow descent.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make investment decisions based solely on what you read here.