Bitcoin Still Remains In A Strong Bear Trend

Bitcoin Still Remains In A Strong Bear Trend

Bitcoin has eventually made that fake out that we talked about in our yesterday’s analysis. People are predictable, especially in this market. So, when BTC/USD climbed past $6.6k again, many traders entered aggressive short positions hoping that the market would decline again. That created a honey pot for the whales and market makers and the manipulation that we saw yesterday was about hitting that honey pot and liquidating a large number of those bearish positions. This is not the first time that we have seen this and it will certainly not be the last.

It is important to realize that Bitcoin remains in a downtrend. These moves accomplish nothing more than just change short-term sentiment all of a sudden which makes the majority of retail traders make false decisions. It’s a win-win for them in times like these when the volume is drying up. This continues to be the good old way of making an easy buck. Of course, none of the champions of Bitcoin that actually run the show care about how it makes the market look. They don’t care if investors from other markets think that the cryptocurrency market is a joke or not as long as they are making money at the expense of unsuspecting retail traders who will continue to complain about foul play but in the absence of regulation they have nowhere to go.

The cryptocurrency market same as other markets is waiting for the S&P 500 (SPX) to make the next decisive move. The same is true of WTI Crude Oil (USOIL) as well. Soon as we have clarity on that front, the big players in this market would be comfortable letting the price fall. This market has become merely a tool for them to mitigate their risk while they play the bigger game on the stock market. So, unless the stock market falls again, we are likely to see Bitcoin continue to trade sideways or stall the next major decline. The writing is on the wall for those that want to see.

Bitcoin dominance (BTC.D) remains in an uptrend and could soon shot past the 200-day moving average which is extremely bearish for the entire market. Ethereum dominance (ETH.D) has already declined below the 200-day moving average and has failed even to break above the 5-day EMA. These are the final days in my opinion that we see BTC/USD at these prices. The price is likely to decline much lower and when it does, it will be quite a long time before it recovers again.

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