Bitcoin (BTC) is on the verge of a major decline as the price has just found resistance at a trend line support turned resistance. BTC/USD declined from there but before it could continue its decline below the 38.2% fib extension level, it rallied higher from there to shake out the bears. This is nothing surprising because the market makers have always attempted to shake out the bears before the biggest and most meaningful crashes. There was a strong probability that this might happen and the big move to the upside that left a long wick shows us how much real buying interest there actually is in the market. This is nothing more than excessive manipulation and a short term pump before the inevitable crash.
There is no doubt that Bitcoin (BTC) might have a future if it turns out to be a global currency and the fix to our broken financial system but it is important to realize that price and tech is not the same. Most of the trading volume on exchanges comprises of wash trading or bots trading among themselves with fake orders. When times are good, exchanges make their money from the fees but when interest in cryptocurrencies is low, some of them that have the power to do so resort to such schemes to bet against their users and pocket their coins. That being said, it is no excuse to say that you lost money because the market is manipulated. There are ways to protect gains and minimize losses that traders need to make use of in order to protect against such stop hunts.
Bitcoin (BTC)’s recent big move to the upside does not seem so surprising when we take a look at the August,