This week we saw something momentous happen in the markets. The Bitcoin ETF (Exchange Traded Fund) was released and investors were buying it up in record time. We were speaking the other day with a good friend of mine Erik about Bitcoin and I brought up the fact that I didn’t like the idea that it is so heavily known, advertised and available. There are ATM machines you can find everywhere and it just seems like something is off. The question has to arise what the centrals banks think of this asset and what are they doing about it.
After much thought I started to realize something big.
Whether the banks think of Bitcoin as a threat of not I can’t know for sure BUT what I do know is that they want to control the price of Bitcoin as much as possible.
I will direct you to December of 2017 when the futures market opened up to Bitcoin by allowing traders to invest in going Long and for the first time ever going short Bitcoin. What do you think happened?
That’s right we saw a major crash in price from almost reaching 20k down to 4k. This happen AFTER the futures contracts were brought in. I can tell you that I was watching the positions of I saw the bankers get in massively short to start the bull run. Meanwhile on the news and media they were pumping Bitcoin and saying that 50k and 100k were coming. We all see how that worked for everyone.
What does this tell me?
It tells me that the bankers want to control the price of Bitcoin to a certain extent. They may know that they can’t control price at all times and that there will be great momentum that will come in BUT they do want to be able to manipulate the market whenever they feel it necessary.
That is why – going forward – watching for chart signals will be extremely important. We cannot under any circumstance trust anyone when it comes to Bitcoin. They only thing we can trust is our own chart analysis skills.
What I believe we are seeing the beginning of is massive manipulation of the Bitcoin market just as we’ve seen with #Gold since ETF’s were first introduced in 2003. The banks will not let price get too out of hand without trying to shake out investors.
This means that we will have a significant advantage once again as we map out the buying/selling formed by the banks and trade alongside them.