Again, I've proven for myself that I'm not very good at predicting price moves based on technicals. Bitcoin soared to almost 11000 over night, only three days after I warned of weak technicals for Bitcoin at 9000. That's a 20% profit for anyone who took my advice as a contrarian signal to buy.
However, it remains unclear who the buyers have been. Volume has been low and the retail investor seems to have been absent. Google trends for Buy Bitcoin is continuing lower. The naive buyer seems to be out of the game. On the other hand, a single buyer was active at around 9000 with a 400 million dollar bet. The whales appear to be the big movers.
With almost all the Bitcoins in the world owned by a handful of super rich speculators, it is without doubt one of the most heavily manipulated investment objects in existence. Pushing Bitcoin above its weighted 200 day moving average has no doubt been high on the agenda of the whales, who appear to have been successful at this point. Next on their agenda must be to re-create the hype. Mainstream media must again be engaged. With plenty of cheer leaders, and a knack for creating media attention, the Bitcoin whales will again draw the naive buyer into their trap.
It will be harder to convince people to enter this time around. However, now that the main technical resistance has been breached, there is little to stop Bitcoin from soaring, especially if volume remains low. Expect the hype to return in the coming weeks and months. The naive investor is going to be fleeced again.
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