Bitcoin Is Falling, This Is Why

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Bitcoin Is Falling, This Is Why

They’re Investigating, So What?

The CFTC and US Justice Department have launched a joint investigation into alleged market manipulation within the Bitcoin market. The news sparked a sell-off in the currency that is misplaced as neither agency has much authority beyond the boundaries of the US. The press released mentions unnamed actors within the Bitcoin trading community who fear spoofing and wash-trading are happening. Let me assure you, they are.

Spoofing is the practice of issuing a large of number of fake orders (by an exchange, broker etc) in order to lure real traders into taking the other side of the trade. Wash-trading is the practice, also by a broker or exchange, of trading a high volume of Bitcoins with themselves. In both cases the practice falsifies trading volume in effort to induce trading activity on a platform and profits for the exchange.

In my opinion it is likely the Winklevoss Twins, Tyler and Cameron, are involved if not behind the complaint which sparked the investigation. The two are long-time proponents of BTC and own the US most elite BTC exchange, Gemini. Gemini made the news earlier this year when it invited the NASDAQ to audit trading activity in effort to spot illegal or illicit practices.

Bitcoin fell hard on the news, extending losses begun earlier in the week. The good news is that the token has stopped at a support target and looks like it might hold at this level. Also good news, BTC is trading at such a low price that many miners are not able to show a profit. This means they will be holding their tokens, reducing available supply and aiding a build up in demand that will fuel the next rally. If price falls to the $7,000 I am a buyer.

Ethereum fell on the same news, hitting a multi-month low below $600. The token found support at that level however and formed a bullish piercing candle with long lower shadow. The candle is a strong sign of support that is confirmed by stochastic. A move up may find resistance at the short term moving average so long term traders should be cautious.

Litecoin is a solid buy today. The token has retreat to the long term support level of $120 and showing signs of bouncing. The stochastic is forming a bullish crossover while MACD peaks and moves higher, consistent with support and potential for reversal at this level.

Bitcoin Will Stop Falling Early 2020, This Is Why

Bitcoin’s price continues to slide especially after the waterfall decline since mid-November. Crypto investors get very concerned, sentiment is horrible. Readers keep on asking us when Bitcoin will stop falling, whether our Bitcoin price forecast for 2020 and 5 cryptocurrency predictions are still accurate. InvestingHaven’s research team strongly believes that Bitcoin will stop falling in the first months of 2020, this is why.

The short answer to the above question is ‘yes’. When it comes to our Bitcoin forecast of $24k though we will likely see this delayed with a year. So our 2020 forecast might be more applicable to 2020.

In the end if anyone can make a 6-fold return on its investment in one, two or three years, does it matter?

Yet we continue to see a high level of anxiety among crypto investors. As if the end of the world is near if Bitcoin does not stop its fall now, and starts rising tomorrow. That’s not how markets work, and they really do not care about what anyone of us thinks, believes, or wants.

Bitcoin Will Stop Falling Early 2020

All our 5 predictions outlined in the article mentioned in our intro are still accurate. Not any fundamental has changed, on the contrary. What we clearly see happening now is this period of ‘catharsis’, or, in other words, cleanup of scams and other irrelevant cryptocurrency projects. This simply takes time.

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We clearly see the new channel on Bitcoin’s daily chart, and the good news is that the bottom is in sight.

Below is the channel which is the dominant trend.

We keep on getting messages from readers asking to assess whatever other forecast from other analysts that say that Bitcoin will go to $1k and lower. Almost everything we have seen so far was assessments based on previous dominant trends. Our point of view is that the bottom will be determined based on the current falling channel.

We assume that the 3d touch on support within the current channel will be the final bottom, we assume that the 3d touch on resistance will be the start of the new consolidation period that will likely span over 2020.

As shown below Bitcoin is now very close to a MAJOR bottom. That’s why we believe it is time to look into the strongest altcoins that will provide the leverage we want. As said in our article on Medium Bitcoin will have less upside potential than Ripple’s XRP (XRP) token.

Ed. note: This chart and forecast is a sneak preview of what premium members get. It is in fact just the tip of the iceberg. We offer much, much more materials, detailed and actionable insights for crypto investors. You too can get instant access to this by becoming a premium member now >>

Bitcoin Is Falling, This Is Why

They’re Investigating, So What?

The CFTC and US Justice Department have launched a joint investigation into alleged market manipulation within the Bitcoin market. The news sparked a sell-off in the currency that is misplaced as neither agency has much authority beyond the boundaries of the US. The press released mentions unnamed actors within the Bitcoin trading community who fear spoofing and wash-trading are happening. Let me assure you, they are.

Spoofing is the practice of issuing a large of number of fake orders (by an exchange, broker etc) in order to lure real traders into taking the other side of the trade. Wash-trading is the practice, also by a broker or exchange, of trading a high volume of Bitcoins with themselves. In both cases the practice falsifies trading volume in effort to induce trading activity on a platform and profits for the exchange.

In my opinion it is likely the Winklevoss Twins, Tyler and Cameron, are involved if not behind the complaint which sparked the investigation. The two are long-time proponents of BTC and own the US most elite BTC exchange, Gemini. Gemini made the news earlier this year when it invited the NASDAQ to audit trading activity in effort to spot illegal or illicit practices.

Bitcoin fell hard on the news, extending losses begun earlier in the week. The good news is that the token has stopped at a support target and looks like it might hold at this level. Also good news, BTC is trading at such a low price that many miners are not able to show a profit. This means they will be holding their tokens, reducing available supply and aiding a build up in demand that will fuel the next rally. If price falls to the $7,000 I am a buyer.

Ethereum fell on the same news, hitting a multi-month low below $600. The token found support at that level however and formed a bullish piercing candle with long lower shadow. The candle is a strong sign of support that is confirmed by stochastic. A move up may find resistance at the short term moving average so long term traders should be cautious.

Litecoin is a solid buy today. The token has retreat to the long term support level of $120 and showing signs of bouncing. The stochastic is forming a bullish crossover while MACD peaks and moves higher, consistent with support and potential for reversal at this level.

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