How did Bitcoin rally so god damn fast? Explained!

Big players and most likely very experienced traders test support and resistance and see how the market reacts, then they choose a direction.

From this morning, I suspect the person who dumped multiple rounds of 1000 coins is the same as the person who short covered.

He is testing how much market can absorb when he sold thousands of coins. However, he failed to make a new low, in fact while he was selling, you can see bfxdata that people were buying/covering. He decided the direction was clearly up and he market ordered all his shorts and probably bought some more for himself.

Whether you believe my story is up to you, but this type of stuff happens since the beginning of time. Here is a famous excerpt from the 1900s on speculation that is similiar to what I described except it is from the whale's perspective! It is a long read, so do your homework.