THE CHRISTMAS CRYPTO CORRECTION
Whales under the surface…
Let’s look at more closely what happened during the recent crypto correction and let’s figure out what explains this correction.
This article might sound very much unlike a crypto fairy tale but we would like you to see how manipulated these markets are.
After the futures market opened at the CBOE and nothing significant happened, Bitfinex started printing Tethers. They printed more than $150 million Tethers in one week. When something like that happened in the past it would result in a huge jump in Bitcoin prices. But this time it did not lead to a sudden rise. So Bitfinex printed another $200 million Tethers in order to push the price above $20,000. It did not work. The manipulators realized that Bitcoin was not going to go beyond $20,000 in the near future. So they moved on to plan B: to get the big whales to cash out on BTC. We will come back to this. But we have to look at another factor.
That other factor is Bitcoin Cash. Coinbase, out of the blue, announced they would add Bitcoin Cash to their range of coins. Bitcoin Cash whales decided to pump the price to the moon. They used their trading bots to accomplish that. However, there was a bug in their scheme and though they did not mean to reveal their bot-aided price pumping project, things got out of control and this whole manipulation became visible. That was when Coinbase shut down Bitcoin Cash trading for the day. They needed to do so because they had to hide what got on the surface in spite of their intention to hide this bot manipulation. The evidence was erased successfully.
So, coming back, there were two failed attempts: one of them was to push Bitcoin’s price beyond $20K and the other to pump Bitcoin Cash price up. Neither worked, so the whales decided to start selling. The goal? Simply to take the profits they accumulated during the year.
BUT they did not let the price crash. They made the price fall to a so-called support level that could be explained “exchange-logically” on the charts. They had to make sure that the price did not fall under $12K because that could have resulted in another sudden fall of $5,000 and below that level even they, the whales, could not have controlled the outcome. They succeeded in stopping the fall at $12K. The price stabilized, so they did not crash Bitcoin but they got the most out of it: they cashed out spectacular profits at the all time high Bitcoin price.
It’s obvious that a bullish trend is coming real soon, Bitcoin price is going to soar again and if you managed to follow this article you will not be surprised when a manipulation like this comes again as the whales decide to harvest their profits in the new year.