Bitcoin’s $3000 Price Pump Could Be Whale Manipulation
BeInCrypto | Oct 29, 2019 07:34AM ET
The NEO, enjoyed one of their largest increase to date.
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While all the reasons presented above may have played a part, a very strange characteristic has been the sheer swiftness of the increase. One possible reason for this can be the manipulation of the market caused by whales.
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Cryptocurrency trader Jacob Canfield outlined the stages in which whales conduct their manipulation tactics:
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I was explaining how whales manipulate altcoins earlier. For those not familiar with whale manipulation this, is a good guide on what to look out for.
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There are typically 6 stages:
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1. Suppression
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2. Range Bound
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3. Test Pump
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4. Sell Off
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5. Price Pump
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6. Exit
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The image shows a period of time in which the price of Ontology was allegedly manipulated. This tactic has six stages, which go side-by-side with price movement.
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Let’s look at the recent Bitcoin price movement and see how they align.
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In this stage, whales want to suppress the price in order to wipe out long buyers. In the Bitcoin price, this is likely to have occurred in the period from September 6-24.
h5 Stage 2/h5After capitulation, the whales keep the price trading inside a range in order to make it seem predictable and build strong positions. This could have been the channel in which the Bitcoin price traded from September 24-Oct 23
This is a test pump in order to build positions, followed by price suppression to remove weak hands. This was evident in the long upper wick of October 11.
h5 Stage 4/h5This is a high liquidity sell designed to take out stop-losses placed because of the previous trading range in the second step. This perfectly aligns with the Bitcoin price decrease on October 23.
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The next stage is a very high-volume pump that is designed to attract FOMO buyers. This could have been the pump on October 25.
h5 Stage 6/h5The final stage creates sell orders in order to dump the price. Afterward, the cycle is repeated. This has yet to occur.
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If this is correct, we will soon see a big dump in the Bitcoin price, causing a swift decrease and making many traders close their longs.
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Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
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Images courtesy of Twitter, TradingView.
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