Bitcoin Bears Are About To Take Over

Bitcoin has recently been pumped by Tether (USDT) printing. Every time we have seen the market come close to a major decline, we see these attempts to save the price from falling with more Tether printing and money being injected into the market. This not only about Bitcoin. Recently, President Trump said the big oil deal with OPEC Plus had concluded but it couldn’t save WTI Crude Oil (USOIL) price from falling below $20/barrel. The point is, manipulation like this might stall the inevitable but it cannot prevent it.

In the case of BTC/USD, we have seen that the market is off to a bloody start. While this may lead a lot of traders into thinking that Bitcoin is just about to fall down to $1k because central banks are mulling over banning stablecoins, the reality on ground is that it is never as simple. The market makers and whales might want to trap in a final wave of bears to be shaken out just before the next big decline. Something similar happened previously when the descending broadening wedge that BTC/USD had been trading in ended up being invalidated short term. The price ended up falling back into it and declined lower but it liquidated a lot of traders that approach the market with a textbook mindset.

The situation remains very volatile, but I expect the S&P 500 (SPX) to rally towards the 61.8% fib retracement level before the next major decline. That level has to be tested at least once, if not multiple times before we form a strong opinion about a bearish reversal. Meanwhile, Bitcoin dominance (BTC.D) could decline and the cryptocurrency market might see some short-lived bullishness. It is very important to realize that this next decline will be unprecedented and one of the most brutal declines in the history of Bitcoin. It is therefore no use trying to chase any moves to the upside because the risks are definitely not worth any potential rewards at this point.