Bitcoin (BTC) Has Once Again Delayed Its Final Correction To The Downside

Bitcoin (BTC) Has Once Again Delayed Its Final Correction To The Downside

Bitcoin (BTC) has once again delayed its correction to the downside. If BTC/USD had closed the week above the $4,000 mark, we would have already seen this week begin with a strong move to the downside. However, that did not happen and now we will see another week of sideways movement with a potential spike to the upside on the weekend. If we look at the daily chart for BTC/USD, we can see that the bullish gartley pattern on the daily chart has to come to fruition like it did between December, 2018 and February, 2019. For that to happen, we have to see the price make a move to the upside before the correction can set in. So far, the price is holding above the 38.2% Fib extension level which seems to be a strong support.

The price has been trading close to this level for the past few weeks and we expect it to continue to trade in this manner for this week and possibly next week too if we do not see a spike at the end of this week. The daily chart now shows that trading conditions are nearing overbought conditions on the daily time frame as well but there is still significant room for a rally to the upside. We already know that the conditions on the weekly time frame have been overbought for a while now and it is only a matter of time before we see the final corrective wave to the downside come to fruition. So far, neither the bulls nor the bears are ready to step up and the whales are concerned that this play is far too predictable. So they are trying to make it more confusing by delaying the inevitable.

The number of margined shorts has been on a rise but we will see it come down eventually as the price prepares to make a move to the upside. The 4H chart for BTCUSDShorts shows that the bears are ready to push short term but they are likely to give in to the next spike to the upside. Most of the retail bulls and the retail bears end up losing money because they make impulsive calls that are based on sentiments and emotions rather than logic and reason. The whales on the other hand are pretty good at this game and even if they are not good at trading they have so much influence that they can swing the price either way with their algorithms and bots.

There are cases of strong manipulation in this market. A lot of analysts have pointed out with proof how trading activity on major exchanges has been manipulated in broad daylight on some of these exchanges. It is unreasonable to expect otherwise in a market that is so under regulated. We have seen a lot of cryptocurrency enthusiasts talk about self-regulation but we have not seen them take any steps so far to address that manipulation perhaps because they are part of the new status quo and as such direct beneficiaries of such moves. However, for those in the industry that care more about Bitcoin (BTC) than its price, this is a serious concern, one that should be dealt with immediately before further damage is done.

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