Published
4 years ago on
February 17, 2020
Bitcoin (BTC) has finally crashed below the rising wedge and we are now seeing it decline down to the $9.5k zone. Whether or not it can hold that level remains to be seen but this certainly does not appear to be the end of the bullish advance. As we have discussed before, the bullish advance that we have seen recently comprised mostly of manipulation. The same is the case with this recent decline. All such big moves are cases of manipulation which should be approached with extreme caution. These extreme moves are meant to strongly influence market sentiment at a given time to the will of the whales and market makers.
We have been expecting BTC/USD to decline below the rising wedge and that has finally happened. However, before it declines further to begin the major downtrend, it is very probable that we might see a move to the upside. However, it is important to realize that calling for a move to the upside without confirmation would be no different than catching a falling knife. Bitcoin (BTC) risks a major downtrend long term and traders who wish to enter long positions at this time to buy the dip might want to consider the risks that they would be taking on.
The daily chart for Bitcoin dominance (BTC.D) shows that we are now seeing a comeback in dominance considering the market has crashed recently with Bitcoin (BTC) holding its ground better compared to altcoins. That being said, we are likely to see this trend reverse short-term in the days ahead. That would be a time where we could see BTC/USD begin a potential rally from current levels with altcoins rallying much harder.
The game plan here is that the whales are trying everything they can to prey on retail traders on both sides. To them it makes no difference whether it is the bulls or the bears that they target. They realize that sentiment will remain strong before halving so they can afford to play these games to shake out traders near-term. There were a lot of stops around $9.7k which seem to have been shaken out by the recent move. Bitcoin (BTC) bulls would definitely be in doubts at this time but it is times like these when everyone is fearful that there is an opportunity to be greedy. However, as mentioned before it is important to understand the risks and have a strategy in place before entering any long positions. Waiting for confirmation is always worth it even if it means losing on some potential gains.
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