While traditional markets traded muted most of yesterday, crypto markets are swinging wildly. Investors are torn between the euphoria of an incessant rally, the unbearably close 20K mark but, also, the risk of waiting too long before taking profit and the volatility that historically plagues Bitcoin rallies -and definitely altcoin rallies.

We’re currently 12.8% down, following more than a billion worth of liquidations across exchanges.

We’d like to draw your attention to three interest points:

1. Miners have not been selling much of their coins. This has been -and remains- very supportive of higher prices. The lower selling pressure makes it easier for a flurry of investors pouring in to push prices up.

2. On a less supportive note, we’re seeing more whale transfers to exchanges. Historically this has been the trigger for at least some retracement. Large investors are getting ready to take some profits.

3. The comment by Coinbase regarding US regulators’ intention to regulate private wallets is also significant. While this might not seem like a major event for any centralised exchange, since they typically already KYC users, it does hint at an intention: to make it harder for anonymous holders of crypto to operate. The ability to own in a very private way and to transact peer-to-peer is at the heart of what cryptocurrencies stand for and seeing this threatened probably frigthens many people in the space.

For now, the fundamentals that fueled this rally (the global monetary policies and growing allocation from institutions into BTC) remains. We’re hearing many investors were hoping for a pullback to allocate more money to crypto, this may be the time.

Technical Analysis

While the entirety of crypto-Twitter clamored for BTC to reach all-time highs, the coin unsurprisingly left many hanging. Bitcoin is down and the move is significant.

After touching highs of $19,480 in the previous session, prices fell a full 12.8% today, all the way down to $16,200. Prices interestingly bounced off the $17,130 support, retraced to the higher support at $17,890, only to then swing even lower, towards $16,200.

While fundamentals haven’t really changed, investors might give in to fear and greed, taking profit while they still can. If we fall further, $15,320 is the new level to bounce from or break through.