Unprecedented Bitcoin (BTC) Manipulation Reveals What Lies Ahead

Bitcoin (BTC) made a series of big moves in the past 48 hours which were primarily a result of catching the bears off guard and liquidating their positions. This was extremely painful for the bears and it was an unprecedented case of market manipulation. II have never seen such blatant manipulation in this market. We have seen moves masked under news but we have not seen moves that seemed to be aimed at liquidating positions. I have been bullish on Bitcoin (BTC) near term and those that have been bullish recently might have profited off this move as well but this is by no means a healthy development for the market. We saw BTC/USD shoot past the 38.2% fib extension level and then decline back below it. 

In one week, it tested both the 61.8% and the 38.2% fib extension levels from the December, 2018 low. This recent move has made one thing clear and that is the desperation of the market makers who want to do anything they can to keep the bears away from the major decline that I have been talking about for months. Bitcoin (BTC) has not bottomed yet and even those that think it has bottomed expect it to decline to $6,000 or lower levels. Too many people expected that which is why it is not surprising that this happened. However, I am very surprised that it happened in this manner. Seems like the whales and market makers do not care about whether this will discourage people from trading this market or not. They have long been preying on the bears and I think they are now preparing to turn to the bulls, which is why they don’t care how it hurts sentiment or people’s interest in the market.

The daily chart for Bitcoin shorts shows that it has found support and formed a double bottom. BTCUSDShorts is down more than 22% for the day. However, now that shorts have found support and we could see a trend reversal, the market makers seem eager to bring the price down sharply in the same manner in which they pumped it up so the bears wouldn’t have the opportunity to short the market. Recent events should tell you how little they care about how a sense of foul play might affect retail traders in this market. 

Recent moves in the market have also made it very clear that we are not ready for serious investors entering the market just yet. It is a place for the whales and market makers to prey on retail traders. This market has not place for institutional investors, not yet. In my opinion, BTC/USD is now closer to beginning its major downtrend after these recent series of moves. I would not be surprised to see it crash straight to $6,000 now that the greedy bears have been shaken out and the bulls made overly optimistic again.