Bitcoin- Bull Trap Alert!!

If you are thinking about buying Bitcoin to take advantage of the current correction in the price levels then this article meant for you. Drop all distractions like browsing through your phone or checking out what’s coming on the TV. Give me your undivided attention for the next 5 minutes and you will thank for it later.

What caused the Bitcoin crash last week?

Bitcoin lost more than half it’s value on 13th March within a 24 hours period. It created panic in the whole crypto market and all altcoins started falling heavily as well. For a brief period it sunk to as low as $3,700. People were shocked and different theories started emerging about what caused the crash:

• Coronavirus- People blamed the crash to pandemic spread of the virus which had scared people who started selling all risky investments. Point to notice is that Bitcoin was created as a tool to help people in such disturbing times.
• Safe Haven Myth- Everyone started panic selling saying it was a myth that Bitcoin is a safe investment. Most of weak hands who had got into crypto recently packed their bags and left.
• Cash is King- I read many articles that the fall was linked to need for cash to prepare for emergency requirements. This means people had invested their emergency funds in Bitcoin which seems a bit strange to me

After going through all the news available my personal opinion is that the crash was not accidental and was planned manipulation.

• Whale Manipulation- Whale monitoring sites had warned several days ahead that huge amounts of Bitcoin had been moved from cold storage to exchanges several days ahead of the crash. This means someone or some people had already planned to sell off large number of coins to crash the market.

There was widespread panic following the crash and people started suggesting further crash to $1,000 to $2,000 levels. Then as always Bitcoin did the most unpredictable thing- It actually bounced back.

What caused the bounce to $7,000 level?

As soon as the Bitcoin bounced back to near $7,000 level the whole sentiment and focus of news changed overnight. People started saying Bitcoin has recovered from a bottom and was now all set to Moon. This made me think seriously around the following point:

• Has the Coronavirus pandemic stopped? NO.It is getting worse worldwide
• Have the global markets recovered? NO. They continue to crash
• Have people suddenly saved a lot of money? NO. People are struggling to maintain their work with the restrictions everywhere

Looking at whale monitor sites it is clear that this is a setup for another imminent market dump for Bitcoin. Whales are again moving large number coins to exchanges. You may ask “Why are they creating a bounce, why don’t they just sell now?”

That is a good question, and the explanation is Greed of Whales. They are artificially pumping the market by buying small amounts and are waiting for a high price level so they can dump the market again and this time it might be even more severe.

How does this Impact YOU?

• HODLER- If you are a long term HODLer this is of no concern to you as you are here for the longterm game and your faith in a future world where crypto will rule is still intact
• TRADER- You need to be REALLY careful as if you misread the signs and buy expecting a bull run you will be caught in the BULL TRAP. The whales will eat you alive.
• NEWBIE- If you are new to the space and are planning an entry into the crypto space I will advice you to be patient and slowly buy the dips that will surely come in the coming weeks.

Hope this helps with some of the doubts you had regarding the sudden fluctuations in Bitcoin price. If you would like to add a perspective feel free to share it in the comments.

STAY SAFE! From Coronavirus and from Bitcoin Whales!