Trade Manipulation and will Bitcoin drop to $8.500 very soon?
Bitcoin is the strongest and most resilient symbol of the movement of decentralization. A revolutionary new form of money, that can empower the six billion unbanked in the world, and disrupt our old economic system. At the same token, Bitcoin is a huge magnet for everything this revolution of money wants to grow out of: greed, financial exclusion and competition. Some people even say that Bitcoin is a Ponzi scheme, and its price is completely manipulated by wales, hedge funds and exchanges. Bitcoin is the fire of freedom burning down the authoritarian pyramids of power, but you can burn your fingers at the heat of its price swings.
Where should we look for the alchemy to unite these opposites to create the digital gold of the future? Or more importantly, what is Bitcoin teaching us?
In order to explore the dark side of this gamechanger, I called a friend to show me the Sodom and Gomorrah of cryptotrading. What I saw shocked me. We went deep in the rabbit-hole of the darkest edges of the wild west casino of Bitcoin: the trading platforms and leverage sites. A place that the sheriffs of the financial world try to shut down, raid with KYC ( know your client) and badmouth by influencing the media. But it doesn't keep away the cowboys of high leverage, the money makers and swing, trend and daytraders. I understand that these institutions want to ‘protect’ unaware citizens from getting rekt, but even more so, we know that regulations means control, taxes and putting middlemen in place to suck out the commission. Things that crypto lovers have developed a high level of allergy for. At the end of the day, we should be free and autonomous in deciding where we spent our money. When decentralization equals self-empowerment, we should learn how to be fully financially responsible.
But what did my friend exactly show me?
In general, I guess a lot of people discovered, especially in 2017 when Bitcoin rose a staggering 7000% in price, that huge amounts of money can be made, and lost overnight, by the mood of a pumping or tanking candle.
People trade off the volatility of the flagship of crypto: Bitcoin. It is exactly that credential that makes it not suitable in the eyes of many as a digital currency, for now.
But there is much more. I was kind of flabbergasted to learn that within a period of 2 weeks in July, for a total of two times, just after a huge volatile shift in Bitcoin’s price, the biggest exchanges like Coinbase shut down for a few minutes. So picture this: you have a few 100 million to gamble with from your costumers, you buy some Bitcoin, and within seconds the price will tank. You shut down the gates of the casino, sit back and take a sip of your whiskey, while hundred of thousands of traders around the world restart their VPN in growing agony, search twitter for confirmation that the casino is down, try to control their booming blood pressure or throw their laptop out of the window. When they finally get in again, the price lowered a give or take 1000 dollars, and millions lost their money. In the meantime, the Godfathers of Bitcoin have bought back their BTC. And this happened twice last month. For sure, I have no proof of this scam, but a pump happened twice and the biggest exchanges around shut down at the same time, twice. It might as well have been an overload of trading action, but I find it hard to believe that in this age of technology these platforms can’t handle that traffic since it is money we are talking about.
My friend also showed me a peek in the trading community. Imagine a virtual cryptocave where thousands of men, and a dozen woman, gather and talk for hours about TA: Technical Analysis. Welcome in the world of exponential moving averages, the Ichimoku cloud, relative strength index and here it comes: Fibonacci circles and pitchforks.
Leonardo da Vinci, the master of the golden ratio, would have been a great bitcoin trader
I noticed that in this community, it is far more hip to be bullish than bearish, in other words: Moonboys are hipper than people that like red dildo’s. Excuse me? Well, Crowns Crypto cave has his own culture and language. Many crypto guru’s make live streams every day and attract up to 10–30k visitors: every single day! They are not allowed to give trading advice, but you bet that the trading rookie is highly influenced by their ‘opinion’ and ‘market’ observation.
Now back to the title of this piece. Once you get a touch of this trading world, you notice that price is king. And Bitcoins heartbeat never stops. 24/7 moving dildo’s all the way from 2013. Sorry: candles. My conclusion is that in Crown’s crypto cave as in many other channels, the participants gather around the burning fire of greed. Money is to be made, fast, soon and in big amounts. The main topic of the last weeks, according to my trader friend, is whether Bitcoin will make a ‘healthy’ correction to $ 8.500,- or lower. Bitcoin went to fast to soon, pumped by institutional money, Chinese desperate millionaires and retailers fomo-ing in, explains my friend. I have to reconsider a statement I made in my last article about Bitcoins current Bull run. Maybe Bitcoin will drop to $ 8.500,- or lower. But who cares apart from thousands of candle watchers and trend analysers, let them have their fun. By the way, I also learned that you can make tons of money by shorting on leverage, so what's the deal here?
I wrote that last article, and many more, out of my passion for Bitcoin. I needed to learn more about the other side of this crypto coin, the Daily BTC pump and dump show. Somehow I also love the wild west within that crypto casino. In a way, it represents the same spirit of freedom, an accelerated wish to reach financial freedom. Many choose the ZEN way of Hodling, just patiently holding on to whatever Bitcoins of Satoshi’s you have. It is the reason why many in that rat-hole of greed and adrenaline prefer to be bullish, they want Bitcoin to pump and moon to make money, but also to beat FIAT. A strong Bitcoin must have a high price. Or should a strong Bitcoin have a stable and less volatile price? One thing is for sure, most people in the open-sourced community of traders, developers, node owners, early adopters, educators, maximalists, evangelists, Hodlers, Bitcoin millionaires and especially John Macafee with his special bet, want the Bitcoin project to succeed. The movement of decentralization is a family of people that want system change, and Bitcoin is the hope and glory for this peer to peer future.
It is true that the more BTC enters the trading platforms, the more money exits the current FIAT system and floods into Bitcoin. So every trader supports the increase of transactions, the BTC mining, and indirectly makes the network stronger and more resilient. Just don't forget here that these platforms are centralized and they hold the BTC for you. It is also true that this money easily can become $ again. But remember, because of Bitcoin’s scarcity, I believe that more and more people will hold on to their Satoshi’s. Only 21 million Bitcoin ever will be mined, and we are on 85 %! Combined with Bitcoins halvings, we will see a continuous rise in price over time and less and less volatility. This might be the reason that less and fewer people will be willing to gamble and loose. Anyways, who wants to compete with A.I driven trading bots these days?
Bitcoins scarcity is the alchemist magic that will create this digital gold of the future, the possible crypto store of value to measure all other crypto. The Dark Side of Bitcoin will evaporate and transform slowly from the stable and glorious light of the future it beholds
The story goes that many people are actually aware that Bitcoin’s price will continue to rise, but they missed the boat. A big group of people is waiting for the price to drop, in order to still buy Bitcoin cheap(er). Experts like my trader friend believe that Bitcoin still needs a healthy correction to € 8.500,- or lower.
We went too high too fast. But there is a reason for this, and this reason will not go away anytime soon
Political tension is heating up in the world, the FED lowered interest rates the first time after the 2008 crisis, the stock market is diving in the red, indicators show a global financial crisis is imminent, the price of gold is booming and correlates to that of Bitcoin. Maybe Bitcoin has no time for a healthy correction? People in developed countries are looking for financial and real safe havens in these accelerating times of change and disruption. People in hyperinflation nations that have the bad smell of authoritarian or populist leaders in their necks are finding their way to Bitcoin too. When the drop happens, it would be probably the last time that this crazy crypto train stops under 10K to let people on board.
Here is my friend's advice: Regardless of the price, just start saving BTC. Dollar-cost average, open a wallet and put some Satoshis in when you can miss it, get paid in Bitcoin. You won’t regret this in a couple of years from now.
Lucien Lecarme, August 2019