Recent Bitcoin (BTC) Move Indicates The Whales May Not Set Up A Multi Step Trap 

Recent Bitcoin (BTC) Move Indicates The Whales May Not Set Up A Multi Step Trap 

Bitcoin (BTC) moves up, down and sideways some traders win and some lose. However, there is one segment of the market that always wins and that is the whales and market makers. This is true of other markets as well but it happens more frequently in this market because most of the trading volume is fake as we now know from authentic sources. Bubbles always burst and there is no two ways about that because certain things repeat over and over again. We have seen many bubbles throughout history and during each one of those the vast majority of investors believed that maybe it was something novel or special that would not meet the same fate. 

If we were to take a look at the BTC/USD chart, it makes a lot of sense to say that until and unless the price breaks below the trend line support, we can stay bullish on the market. However, the problem with all that is that it could change in an instance. Bulls go up the stairs but bears go out the window. This time, the situation is a lot more bearish in the context of macro developments on the political and economic front. This does not bode well for the cryptocurrency market. It would be wishful thinking to believe that all the big players in this market are going to let the majority of retail traders buy the bottom to accumulate Bitcoin at bargain prices before the next halving. The reason I say majority is because almost 70% of trades are Long and only 30% long on the big three exchanges. 

Bitcoin whales seem to be running out of time to create multi layered traps. The S&P 500 (SPX) has declined below the 5-week moving average for the first time in the last 120 days which obviously has them concerned, hence the recent exit pump. This move is a lot similar to what happened in October which is why investors need to be extremely cautious especially on the bullish side. 

The weekly chart for Bitcoin dominance (BTC.D) shows us something that should warn us that this time things could get a lot uglier. We can observe on this chart that Bitcoin dominance (BTC.D) which started to crash in 2017 that led to a mega bull run in the cryptocurrency market, is now starting to climb up again. In fact, it is on the verge of a massive breakout. It does not take much to figure out what would happen in case Bitcoin dominance shoots towards pre-2017 levels. This would be extremely devastating for the entire market and it will be something we have not seen since 2014. 

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