Analyst Raises Red Flags On Bitcoin Price: Allegations Of Market Manipulation
As investor nervousness grows over the potential for a brand new bearish cycle, the case for Bitcoin (BTC) to renew its halted upward trajectory has gained vital traction amongst high market consultants.
Market analyst Ash Crypto just lately highlighted a number of key elements, together with demand and provide dynamics, a surge in US equities, and rising inflows from exchange-traded funds (ETFs), suggesting that the present market situations might favor Bitcoin’s resurgence.
Market Makers Accused Of Manipulating Bitcoin Prices
In a post on X (previously Twitter), Ash identified that whereas US shares are reaching new all-time highs, Bitcoin has struggled to interrupt above the $117,000 mark, presently consolidating between $110,000 and $115,000.
He argues that this case just isn’t indicative of weak demand, however relatively the results of an alleged state of affairs that’s gaining energy amongst analysts: manipulation by market makers and exchanges.
The analyst additional highlights that historic information present Bitcoin’s value actions have been primarily pushed by spot market activities. Buyers would buy cash, absorbing provide and driving costs greater. However, immediately’s panorama is markedly completely different.
Ash Crypto means that the introduction of futures and derivatives has remodeled how Bitcoin is traded. He alleges that exchanges found that creating artificial Bitcoin contracts is commonly extra worthwhile than dealing in precise spot Bitcoin.
The analyst notes that this shift permits undisclosed cryptocurrency exchanges to control market actions utilizing leverage and bypass the necessity for tangible Bitcoin.
What Historical Patterns Suggest
Ash identified {that a} state of affairs indicative of this alleged manipulation was when Bitcoin just lately touched $124,000, market makers and bigger buyers rapidly shorted the asset via futures and exchange-traded funds.
This triggered a wave of liquidations for bullish buyers that predicted a brand new leg up, inflicting the worth of Bitcoin to plummet to the $107,000 mark solely two weeks in the past.
The analyst famous that though US equities are experiencing vital development and liquidity is flooding into threat belongings, Bitcoin continues to be caught in a cycle of manipulation that obscures its true worth.
In brief, spot demand for Bitcoin continues to construct, ETFs are steadily absorbing extra cash, cryptocurrency exchange reserves are dwindling, and long-term holders are refraining from promoting.
However, Ash Crypto notes that the presence of futures and derivatives for the cryptocurrency creates an “phantasm of weak point,” reportedly designed to shake out retail buyers from present market ranges.
Despite the present challenges, he notes that the present bullish cycle stays intact. Historical patterns from 2017 and 2021 present that Bitcoin usually experiences durations of suppression and sideways motion earlier than exploding greater, suggesting a possible new value discovery part forward for BTC.
At the time of writing, Bitcoin was buying and selling at round $114,969. It continues to be recording positive factors of almost 3% and 6% within the seven- and fourteen-day time frames, respectively.
Featured picture from DALL-E, chart from TradingView.com
