Has Bitcoin Finally Begun Its Decline? 

Has Bitcoin Finally Begun Its Decline? 

Bitcoin has now come crashing down after the fake pump. Back when we saw this pump in BTC/USD, we discussed how this was a trap and the price will end up declining further after that. It has finally happened and we can now expect a downtrend in BTC/USD in the weeks and months ahead. However, before that happens, I wouldn’t discount one last move to the $8,200 level. The reason we expect another downtrend has more to do with larger financial markets than the chart of Bitcoin or other cryptocurrencies.

Recently, WTI Crude Oil saw a wild volatility move that caused havoc in the commodities market. We saw BTC/USD give up most of its gains and begin a downtrend. The correlation with commodities in Bitcoin appears to be carefully staged as we well know that most trading activity in Bitcoin is dominated by bots and algorithms. More than 90% of it is wash trading and therefore carried out in a systemic way to suit the agenda of major stakeholders in this market. 

We can see on the ETH/USD chart how Ethereum and other altcoins practically did nothing while Bitcoin kept pumping. Now when Bitcoin declines these coins will end up losing more ground. Even though BTC/USD will come down to where it was, these coins will fall lower than where they were. The price of Bitcoin has found support on the 38.2% fib extension level at $7,851 and can therefore rally higher towards $8,200. Meanwhile, Ethereum dominance (ETH.D) has been declining with no signs of any potential recovery. 

The EUR/USD forex pair has declined below the 200-day moving average in the same way as before. Interestingly, the USD/CNY pair has done the same. This coupled with the decline in the price of Oil and Gold tells us that the whales and market makers are running out of reasons to artificially prop up the price of Bitcoin and other cryptocurrencies. 

Developments in the Middle East that led to confusion and uncertainty in the market have now come to a close. Tensions between Washington and Tehran have simmered down after the recent strike by Iran that made sure that there would be no casualties. After that, President Trump announced that no American lives were lost in the attack. This could be a sign from Iran that it does not want war. The US has already made it clear that it does not want further escalation. These developments indicate that markets might go about their business and resume what their previously established trends. 

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