(BTC) is currently struggling hard to stay above the $8,000 psychological mark. The price seems to be defending well for now but it will most likely come down over the next few days to complete a long anticipated double bottom. This would also complete a pattern of three bounces which will result in a bullish impulse up ahead, most likely at the onset of the next week. Interestingly enough, Bitcoin (BTC) will also form a double bottom on the RSI during that time. The weekly chart for BTC/USD looks oversold but shows weakness for limited downside.
Consensus 2018 concluded with a lot of positive developments for the blockchain industry. The number of participants was higher than expected. Many crypto enthusiasts expected the enthusiasm to reflect in the price of Bitcoin (BTC) but on the very contrary, the price continued to fall. While one could come up with a plethora of reasons why the price did not reflect the exuberance of blockchain
activists, the most simple of all of those reasons is market psychology.
Big investors, also known to some as whales know exactly what the mainstream investors think. They have mastered and perfecting the art of anticipating just what exactly the common trader thinks at a particular instance. This is how they got to become whales in the first place. The success to trading and investing in any market lies in separating yourself from herd mentality. When everybody thinks something is going up, chances are the opposite is going to happen. The same is true when everybody becomes bearish and thinks for instance that Bitcoin (BTC) is going to $1,000.
Bitcoin (BTC) received a different level of acceptance in late 2017, one that was unseen before. Bitcoin (BTC) had a big rally in 2013 and as much as institutional investors would have loved to be a part of that rally, Bitcoin (BTC) was a dirty word back then. It was associated with drug dealing, kidnapping and extortion. To many of us, the people who used Bitcoin (BTC) were those with ulterior motives. In 2018, that is no longer the case and institutional investors
know it which is why they are so eager to fill their bags by doing all they can.
So, at a time when most Bitcoin (BTC) enthusiasts are expecting a rally, they will try to suppress the price. This suppression of price then leads to depression and anxiety which is just one step away from fear and market makers just need to give it one last push to trigger some panic selling. While such tactics might be questionable and easily traceable in other markets, they are used with impunity by market makers in crypto markets to manipulate Bitcoin (BTC) and other cryptocurrencies. Of course, the net result of all this is that mainstream investors sell their Bitcoin (BTC) to these market makers who keep filling their bags for long term.
When the price starts to appreciate, these market makers will then sell the same Bitcoin (BTC) to their customers for a premium. Better yet, they will sell them financial derivatives of Bitcoin (BTC) and not the actual Bitcoin (BTC) itself. It is surprising to see how tactics like these have continued to work for so long but so long as institutional investors know that they can create some fear to squeeze a little more Bitcoin (BTC), they will not stop. Once they know for sure that no one else is willing to sell them their Bitcoin (BTC), all these big financial institutional investors like Goldman Sachs and JP Morgan will start pumping the price with positive news about how Bitcoin (BTC) is a revolutionary technology and why everyone needs to be a part of it.