ForexMinute.com – After showing promising stable behavior for weeks and months, the Bitcoin market once again faced turmoil in the name of “market manipulation”. Since the start of this week, the BTC price against the dollar has fallen from $588 to $518. Almost every individual in the cryptocurrency community is doing a Sherlock Holmes and trying to figure out the actual reasons behind this huge fall, especially when Bitcoin is in its most optimistic phase.
While digging out the events that coincided with the fall, we may see it started somewhere around the sale of over 1,000 BTC owned by Ethereum. As trading in cryptocurrencies is mostly an emotional job, this event might have injected pessimism in the entire market. Thus, the mood of stability changed and soon overcame by buying-hesitancy and selling pressure.
We must know that any kind of buying and selling in excess technically means manipulation. The Bitcoin market fell at a time when there was already huge anticipation from it to reach the moon. The overlong stability in Bitcoin prices might have hurt the impatient Joes, making them sell their holdings eventually. Even at press time, we are getting reports of 9,000 sold Bitcoins on BitFinex on a 15 minute candle. Is it a single big whale, or bunch of small fishes constellating to be a whale? It is tough to say now.
Another famous reason, which we believe doesn’t hold strong, is the increasing merchant adaption. Traders believe that merchants are involved in quick conversion of BTC into fiat currencies; thus creating a downtrend in the Bitcoin charts. This point can prove to be true up to a certain point, but doesn’t hold its ground in present scenarios. The price fall is sudden at this time. If it was caused by merchants, we would have seen it coming in gradual downtrends over time.
Ultimately, we believe that most of these sellers are short-term profiteers who are deliberately bringing BTC down to eventually buy them back at lows. The price is expected to reverse anytime soon by creating a certain buying pressure.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org
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