What are some reasons that Bitcoin is getting resistance in the market as of late?

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Avatar for michellhilton
4 years ago

Keep in mind that BTC is a “small cap market” with between $150B and $200B depending on the price at the time. That means that it can be subject to fairly strong manipulation by those who hold a lot of coins. In my opinion, we are seeing exactly that. There is a lot (comparatively) money to be made by swings of $1000-$3000 in the price. The Whales (those who hold thousands of coins) can move the price simply by selling a good number of coins. Then, when the price goes down, they can repurchase at the lower price. The difference is their profit. You can do the math.

I heard a good analogy. Imagine you have a ball that you hold underwater. However, it’s attached to an air pump. The ball gets bigger over time and you continue to hold it down. At some point, you just can’t do it anymore. That’s a whale manipulating the price.

This may be the beginning of “too much air in the ball”. I expect there will be another run to the downside, maybe a significant one. Then, the ball will get too big (more demand than the whale wants to deal with). When it releases, we’ll probably see another of those parabolic explosions in the price.

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Comments

Thank you for this article! It gives me a lot of informations about btc Waiting for new posts.from your side

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4 years ago

It is a meaningful article as it sheds light on the reasons for the resistance being faced by Bitcoin as of late. It is interesting. Thank you for this information.

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4 years ago

Thanks for this information.

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4 years ago