In our last analysis on Bitcoin (BTC), we discussed three things. We talked about how the price did not have enough room to rally, how a manipulated pump could happen again and how the price keeps breaking one descending triangle after another as it practically trades sideways. We saw the pump yesterday but considering that BTC/USD does not have much room to rally, that pump was on a shorter time frame although it was the exact replica of the pump prior to that which saw the price shoot towards $10,541. There are a large number of traders still expecting a pump of that type considering it to be a bullish development when it is in fact nothing more than institutional exit out of the market.
The pump that we are talking about is more noticeable on the ETH/USD chart. We can see how this was the same as the large pump prior to that. It was the exact same fractal which should at least make you curious to think whether or not all this is staged. How can something like that happen again in such a short time frame? Who is doing all that? These are questions you might be better off asking now because things could change quickly if the price does not end up breaking out of the descending channel. I am bearish on BTC/USD and I do not think the price is likely to break out of the descending channel at this point because that would mean all the people that are overly bullish on the market right now would be right which cannot be.
This is not about bulls or bears; it’s all about the money. The big players prey on the small guys (retail traders) and they don’t care whether it is the bulls or the bears they take from. If there is a large number of people betting on something then that gives the market makers an opportunity to prey on them. A good example of that was the recent pump which liquidated a lot of bears and trapped in bulls at the top to liquidate them later. The S&P 500 (SPX) closed the day in red yesterday after reaching an all-time high. Meanwhile, the EUR/USD forex pair has formed a double top. If we see a downtrend begin in any of them, we can expect the cryptocurrency market to crash hard just like it did when Bitcoin (BTC) crashed below $6,000. The Fear and Greed Index is still in neutral territory but most of the time it has been in neutral territory above 30, we have seen it lead to a decline soon after.