That is not a bear market â there was still liquidity in the market. As people are trying to invest in multiple currencies they can further destabilize the market. Others have said that Iâm being too fatalistic, and if all of this unravels, it will not be âarmageddonâ. Image: Peter Brandt Image: Peter Brandt The S-H-S is approximately a head and shoulders formation why bitcoin is falling. So, this is by no means something that wasnât to be expected. Since the market (still) trusts that theyâre worth 1 dollar each, it gives the illusion of liquidity and high demand for cryptocurrencies, especially Bitcoin. This action defines the height of the head (the all-time high in price), the shoulder and most importantly the neckline â the place where three sell offs have got to. At the time it started, there were less than 10 million Tethers in circulation, but over the last 8 months they have minted over a billion dollars worth of them. Image: Peter Brandt - this chart says buy either at $12k or $6. Also, it was later found that officials of the the Korean government were found guilty of insider trading. I doubt the crypto market can take another hit like this. One option is that is really was just a bubble why bitcoin is falling. Now, that we have the support building at around the 10,000 USD mark for more than a month, one can easily say it s just a matter of may be couple of weeks before Bitcoin hits new all time high. Unfortunately, that quickly became no longer the case.
People differ in their tendency to believe this, but who knows - all the skeptics just might have been right. One thing that is worth noting is that this is the 4th time BTC dropped by around 30% this year only, and each time it managed to rise for over 100%. The only other futures they are big in are VIXâ¦which is a future on options. He called the top, and in homage Iâm going to âborrowâ some of his charts. I went to a friendâs party on Saturday 9 December, right before the CBOE futures intro, and I tell my friend Tony, âIt looks like a pump and dump to meâ. The real problem is that Tether is majority owned by Bitfinex, one of the largest crypto exchanges in the world. The following table is ordered by daily volume: Look at Tetherâs volume. Youâll see people saying they took these huge loans and buying when the price was highest. Was I really just early with my callâ¦Was the bigger CME futures intro the dump. Another way to think of technicals is with coinbase inadvertently giving away the addition of Bitcoin Cash to that platform. Tether has minted half a billionâs worth of tokens just in the last 3 months. There are suggestions that their frequent smaller transactions were one of the main reasons BTC went so high up in the first place. Sorry I donât have the answer to that one. When these people start panic selling their coins the market gets even more volatile.
Tether is less than 1% the size of Bitcoin by market cap (a âmeaslyâ 1. Image: Iâm hoping that fail to load doesnât mean SuperMugatu has deleted this tweet BTW, Iâm sticking up for Charlie Lee. Value guys buy things because theyâre cheap.Gas.. However, it was clarified from one of the major exchange, pocketbits. 5k answer views Bitcoinâs price has artificially been driven up by an elaborate fraud involving the cryptocurrency called Tether (among other fraudulent things). Footnotes Since the last week of December 2017, the cryptocurrency ecosystem has been going through a lot of turmoil. Fundamentals will always trump technical, but what is going on is technicals sometimes give away fundamentals. BTC value has declined over the last two days, but it may bounce back. Â Is this perhaps what has happened with Bitcoin. With transaction queues so long, itâll be mass panic if the price starts dropping. Thereâs nothing wrong with becoming a millionaire, but if you plan to do that only through Bitcoin or only one particular cryptocurrency, you are perhaps at an increased risk of becoming bankrupt. Let us see below some of the reasons why not only Bitcoin but the entire cryptocurrency space had been going through a tough phase in the past 4 weeks or so. .Skycoin.