Today we made a triple top at 4400 -- it looked like it was going to break into all-time high territory, then somebody on one exchange (Bitfinex) did a ~2000 BTC market sell order. Good example of how the bitcoin markets are still thin enough to be easily manipulated. What it accomplished was "painting" a 4H bearish engulfing candle, which most traders look at as a pretty significant sign of weakness. Market panic and uncertainty ensued, because a potential triple top is a spot where many are already cautious of a rejection. So what probably happened was someone with deep pockets decided they hadn't accumulated enough BTC yet, and wanted to kick it down the hill towards $4000 in order to pick up more at cheaper prices.
So where to consider a buy now? We're still in a strong bull trend, but in retrace / consolidation mode, so I'm looking for confluences of support. The 4000-4050 area looks nice, because many different types of support align there.
how is that manipulation? its just an auction taking place...
Quaren
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@wlrfxtrader, It may not be intentional manipulation per say. We don't know the intentions of the trade, but it seems that one trade looks to be the cause of the following downtrend - so my question is how is it not manipulation...?
You could say ANY trade is 'just an auction taking place'... of course it is.
What this trade shows, and what the author is trying to say is how easy manipulation of the market is for someone with that much bitcoin. This case is a strong example of that, whether it's actually 'manipulation' or not.
mytorc
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Great analysis and explanation of yesterday's plunge. I was watching it the time - no warning - now I know why - thanks!
Agree with $4000 - $4100 buy zone with the caveat that strong underlying bull trend may just recover price without further drop?