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Peter Brandt, a respected trader and respected technical analyst, believes that there is no solid evidence to support that whales and large-scale investors have manipulated the price of bitcoin or the wider market of cryptocurrency.
Futures Market
Earlier this week, after various reports that the fall in bitcoin value coincided with the launch of the CME futures market and CBOE bitcoin in December 2017, Brandt said:
"Cryptos There is no evidence that whales have been short of crypto markets." May seem to come from liquidation of long positions by small retailers. "
Brandt added that it is not possible that the futures market has a huge impact on the price of bitcoin because there are a fixed number of short and long term contracts . "There is always the same number of short-term contracts as there are long-term contracts – always, no matter the market," said Brandt.
Since December 2017, when the CME and CBOE bitcoin futures market has been introduced to the public, the price of bitcoin has risen from $ 19,900 to $ 7,500, or more than 62.3 per cent. The sharp drop in the price of bitcoin has led investors and analysts to suspect manipulations in the futures market, which remains one of the few public instruments that investors can use to invest in the cryptocurrency market.
However, Brandt said that it's not possible for a futures market to see a steady decline in value and overwhelming bear support because the amount of short and long term contracts are available.
If the futures market had the same leverage as it had in December 2018, the bitcoin price chart would have had to demonstrate similar volatility and intensified downward movements. But, bitcoin suffered three major corrections in 2018, and each successive correction recorded lower sales volumes and declines.
A group of bitcoins echoed a sentiment Similar to Brandt's a popular discussion about bitcoin prices, as it indicates that the drop in sales volumes in successive corrections after the initial drop in bitcoin prices in January shows that the downtrend is "running out of gas".
"Not only is the sales volume lower, but the decreases have been less severe.Each component of each leg is less stiff than the previous step.RSI, a dynamic indicator, also shows that the sale has been less extreme The trend is flattening In our opinion, the downtrend is running out of gas.Bears / Whales / Market Makers held a large amount of BTC's that they pumped up to 40%. to 17/12/17 ", said the trade group.
If the futures market for bitcoins had been the major factor behind previous corrections, traders should have been able to benefit from similar leverage in successive corrections. However, the bears have continually lost influence in the market, which was likely triggered by the liquidation of long-term positions by smaller retailers, as suggested by Brandt.
Flattening process
After the end of the flattening process in the coming weeks, Bitcoin will probably experience a strong rebound that will develop in the medium term. In the short term, due to the high volatility of the cryptocurrency market and the downward trend of bitcoin, it is possible that bitcoin will fall below $ 7,000 and will be at the lower end of $ 6,000.
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