My last post entitled ‘slam’ showed how gold, silver and bitcoins were, as I will contend, manipulated down simultaneously last weekend.
In bitcoins particularly this event looks like it was quite successful from the manipulator’s point of view. A huge wave of selling engulfed the bitcoin markets in thin volume during the antisocial hours of last Sunday. After my slam post the price continued to fall quite a way further. If the aim was to maximise how far the price would fall then it looks like it was very effective indeed.
As you can clearly see the wave of selling last weekend was enough to push the price down below $100, more importantly it pushed us down through this key support area I’ve been watching, so the price is now broken below that trendline. Even though the price recovered back above $100 again, the damage is done.
Why do I think this is manipulation? Because of when and how it was enacted. It is no co-incidence that this was done at that time, to attack the trendline. Many people in the forums are discussing this manipulative event and supposing the aim was to push price down simply to buy back cheaper coins and make a nice profit. I view it that the price was pushed down to get below the trendline and paint the chart with a more bearish pattern with the aim of suppressing the price and damping enthusiasm for bitcoins. Likely this will succeed for the near to mid term at least.
The people who control the fiat debt money ponzi scheme cannot allow competition to arise and definately do not want bitcoins to become acknowledged as a safe haven. If you doubt this then I would say you are being quite naive about the way the world really works. The sad thing is it is almost ridiculously easy for them to tweak the chart like this with their virtually unlimited fiat funds at their disposal.
Despite what Ive written so far however I don’t want to attach too much significance to this, the bearish chart may well dampen some speculative interest. However that trendline may not have held anyway, even without the helping push from the manipulator. The next Cyprus type event will probably propel bitcoins back up again no matter what the technical picture looks like. Bitcoins are just about the only viable way to hold wealth in the form of a monetary asset, completely outside the global financial system.
In the short term, from a technical analysis perspective it looks like bitcoins are currently very oversold. Heres a 3 month chart with bollinger band overlaid on the price and RSI indicator.
As you can see RSI has dipped below 30 for the first time since I don’t know when. Additionally the price is right at the bottom of the bollinger band right now. Both of these would lead me to think there is room for a bit of a rally. There appears to be good support support at the round number of $100. I kind of doubt that it can get us back above the trendline though.
If price does continue to fall I will be getting very tempted to start purchasing more bitcoins.