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Recent Bitcoin (BTC) Crash Has Nothing To Do With Small Exchange Hack – Crypto Daily™

Bitcoin (BTC) price plunged hard yesterday apparently on news of a small exchange hack in South Korea. Previous series of events especially the one involving Mt. Gox have inculcated a practice of “finding someone to blame” in the crypto community. As such, the obvious target for many was Coinrail, a small exchange that was also hacked yesterday. While many suspect that to be the primary reason behind Bitcoin (BTC) price crash, very few actually realize that a crypto exchange with a total daily trading volume of $2,481,398 does not have enough fuel to light this kind of fire.

The real reason behind this crash, same as always is market manipulation. Bitcoin (BTC) is starting to get out of the dark phase and move towards mass adoption. Large financial institutions can already see a Bitcoin (BTC) ETF coming in 8 to 16 months time. Four years back, many big investors would not have expected that. However, things have turned out to be a lot favorable for Bitcoin (BTC) and it has seen adoption at a much higher level than many expected. These developments have in turn created a sense of urgency among big investors, including large financial institutions and banks to accumulate all they can before the market takes off.

Bitcoin Chart With Values

In times like these, when Bitcoin (BTC) is already down from an all time high of $20,000 and those who are still holding on are reluctant to sell, market markets have only one option left to accumulate more Bitcoin (BTC) and that option is manipulation. Now, at $20,000 levels, that manipulation would have been easy and market makers would not have to do a lot of work. However, when Bitcoin (BTC) was trading at $7,800, that manipulation required something far more complicated, that is breaking market structure. Market makers know that many traders strongly believe in well defined market structure, so pushing the price below a solid support line would cause panic which would translate into further panic selling, giving them an opportunity to accumulate more Bitcoin (BTC).

Those tactics may work well in other markets but with forex or cryptocurrencies, it is always a gamble. You never know if this scheme may work. Now, there is a consequence of that. If the price is pushed below the market structure and it then immediately rebounds and climbs above the support line it broke, that is known as a failed breakout, which is one of the strongest sign of a reversal and in this case, a strong green light for the bulls. We have an opportunity to accomplish just that, as can be seen in the form of a green candle on the 4H chart.

Bitcoin Chart With Values

Another interesting development regarding Bitcoin (BTC) is that the RSI level for BTCUSDShorts is about to reach its peak. The price for Bitcoin Shorts (BTCUSDShorts) also appears to be headed to a resistance, while trading in a falling wedge. This is another strong indicator that suggests that the bearish impetus has run its course and a faltering sell pressure should pave the way for a rising Bitcoin (BTC) in the days ahead.

source: https://cryptodaily.co.uk/2018/06/recent-bitcoin-btc-crash-has-nothing-to-do-with-small-exchange-hack/

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