What is happening in the crypto industry? Is there price manipulation? Is the house of cards collapsing? Let’s take a closer look.
Bitcoin struggles for $23,000, has failed several times at resistance. Now the fear of a crash is growing: analysts want to have recognized indications of massive price manipulation, there is even talk of a “scary” situation. Will there be another failure á la Terra (LUNA) or FTX?
Is Bitcoin a good investment?
Bitcoin (BTC) has been trying to overcome the resistance at $23ki for days: the key cryptocurrency was able to rise to $23,268 but was unable to hold it here. BTC continues to be strongly rejected and then falls back sharply. Even within the last 24 hours, the digital asset has tried to jump over the critical hurdle – again to no avail. BTC rose as high as $23,043, failed, subsequently fell to $22,414. From here, Bitcoin managed to recover to $22,720, where the number 1 cryptocurrency is currently trading.
But with each additional failed attempt to overcome the resistance, the risk of a new correction now increases. This is also putting pressure on the broader crypto market – many coins are currently facing declines. For example, Ethereum (ETH), the second most valuable cryptocurrency, has lost -4.24% since yesterday, Ripple’s XRP is -3.66%, Cardano (ADA) is down -4.67%.
Overall, the global crypto market cap is down -2.18%. Additionally: In addition to the weak price action, the bearish signals are currently increasing. Analysts, traders and blockchain researchers warn: Bitcoin is hanging on by a thread – it’s all or nothing. If the cryptocurrency fails to show strength now and recapture $23,100, a sharp drop is imminent.
Bitcoin: Everything Just Manipulated?
Cryptoanalyst Benjamin Cowen, for example, warns in a new Bitcoin forecast: BTC is in a situation similar to the one at the beginning of 2020 – the cryptocurrency also experienced recession-like conditions. Temporary, but enough to send Bitcoin falling from $10,500 to $3,800. Even then, many would have spoken in advance of the beginning of a new bull market – only to be surprised by the opposite.
But that’s not all: At the same time as the bearish Bitcoin forecasts, claims are now also being made that the latest rally is just a fake, i.e. an artificially generated bull run. The price explosion from $16,500 to $21,000, the resurgence of the markets – just manipulated? This is what the pseudonymous “Trader_J” thinks, for example.
“Do Kwon bought $BTC in March last year. That market went from $38K to $48K. The whole pump was manipulation. Now from 17K to 23K the market is completely pumped up $BUSD. This looks scary.” Trader_J (@Trader_Jibon) am 24/01/23
The whole pump is powered entirely by Binance USD (BUSD), according to the industry watchdog – it looks “scary”. Top Trader “Bleeding_Crypto” agrees, commented: “I found a lot of data from different sources showing the same thing. The data doesn’t lie.” Then the crypto markets face another meltdown – a correction that will send BTC and Co. to new lows?
Bitcoin may go down to $12,000
Analyst and swing trader CryptoCapo_ is convinced of this. For weeks, he has reiterated his bearish thesis: the current Bitcoin rally is “the biggest bull trap” he has ever seen, “clearly manipulated with no real demand”.
“I’ve been checking charts all the time and avoiding noise from Twitter. The way the upward movement is going, the way htf resistances are being tested…it looks clearly rigged, no real demand. Once again the biggest bull trap I’ve ever seen. But they won’t catch me.” il Capo Of Crypto (@CryptoCapo_) am 21/01/23
He wasn’t fooled, he concluded—the drop to $12,000 was still within the realm of possibility. A brave stance, for which the chart expert had to take a lot of ridicule and malice in light of the generally optimistic mood in the markets. right? The next few days would show that.