What is happening with Bitcoin? Why has it been trading sideways for a couple of weeks now? Will it break out of the pattern in the near future?
The answers are no one knows exactly.
But this is my opinion of what is happening… Everything we do in life involves manipulation in one way or another, so let’s consider how the manipulation could be happening at the moment.
- The Institutional Investors (big investment companies and banks) want to buy Bitcoin and they have formed a ‘boys club’ together with a few countries and other big investors. They have basically decided that they will buy whatever is available and they will buy it without setting off any alarms bells, thus keeping the price steady for a few weeks now.
- The sellers at this point are the smaller investors and individuals who mainly buy when they think something is going to happen, and sell again so that they can make a quick buck. When these investors don’t get the returns they expected they wait for a while, but when the results are not forthcoming they become fatigued and sell off their Bitcoin, usually at a slight loss. This is exactly what the ‘boys club’ expects and they continue buying.
- The third tactic from the boys club is to start pumping the alternative cryptocurrencies and suddenly the smaller guys, who were waiting for Bitcoin to do something, sell their bitcoins and buy altcoins so that they can realise a profit. So everyone gets excited thinking they are making money, when in fact they are actually losing their bitcoins, in return for a small gain in an altcoin which was incredibly cheap before the ‘boys club’ started to pump to price.
- The media is full of stories on Bitcoin, they are telling you that nothing will happen, that the expected breakout will be to the negative, and all the other shit they love spewing – like Bitcoin funds drugs and terrorists. That’s like saying drugs were only used in the last 10 years and the first terrorists only emerged in the last decade. Media has always been for the uninformed masses and that thinking certainly confirms it.
Looking at the above you need to ask yourself and think about why Bitcoin has been trading sideways for so long? My opinion is if Bitcoin had no value as some people say (like the banks who say that and six months later open their own cryptocurrency trading desk) then once the small investors got fatigued they would have started selling and the price would have dropped. This would once again have provided cheaper Bitcoin for the ‘boys club’. But as we know the price has not dropped significantly, thanks to the stability created by them with their steady buying, which has also caused more of their friends to notice, hence the ‘boys club’ has grown bigger and the additional cash injection could sustain the sideways price of Bitcoin even longer.
With this said I do believe that when Bitcoin eventually breaks it will be upward and some of that price action could simply be from some of the ‘Boys’ becoming greedy and not wanting to play by the rules any longer. After all, there are only 21 Million Bitcoin and approximately 5 million are no longer in circulation and are lost forever.
Let me have your comments
We would all love to hold onto our Bitcoin and wait for it to reach 1 million dollars by the year 2040 (which I do believe it will and probably that price prediction of one million dollars will look silly, especially with the high possibility of the ‘boys’ continuing their one-upmanship!) but we live in the real world and need to make our money work for us and pay our normal expenses.
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