Published
3 years ago on
May 06, 2020
The price of Bitcoin had been testing $9k repeatedly which made it clear that it was eventually going to break past it. I posted about this yesterday when BTC/USD was trading around $8.9k and said that it could “fly towards $10K”. It seems that we have exactly that in motion now as Bitcoin has already shot past $9.3k and might end up reaching $9.8k or slightly higher by the end of the day. From a trading standpoint, this is not a good trade. The risk is not worth the reward.
Bitcoin trading activity has been on a steady decline. Meanwhile, Tether (USDT) keeps on pumping the market higher in fake moves of manipulation. In the past 24 hours, the real trading volume for Bitcoin was less than $1.5 billion whereas the one reported on Coinmarketcap is $45 billion. This is too huge of a difference to ignore. This is also a clear indicator of how corrupted this market is and how fake all these moves are. This is definitely not sustainable and will not end well for the majority of retail traders.
A lot of retail traders are still not prepared to give up on their moon dreams. They think halving could push the price to a new all-time high at this point. As I previously said in some of my analyses, the upcoming Bitcoin halving is going to be one of the biggest bull traps in Bitcoin history. To the market makers and whales, it doesn’t matter whether it’s the bulls or the bears that they prey on; all they care about is trapping in retail traders and running their stops. For now, the cryptocurrency market could see further upside but the S&P 500 (SPX) is close to beginning the next major downtrend which would put enormous sell pressure on Bitcoin and see it decline sharply once again after this final move to the upside.
