Did "Mountgox" unload the bag yesterday?
Dump with freefall speed
As I predicted a few days ago, Bitcoin jumped across 4000,00 USD and it immediately went to 4200 USD. Because of the boundaries of sell orders at around 4000 dollars being removed or bought up.
But what the hell happened yesterday afternoon. A dump, like in the good old pump and dump schemes.
Bitcoin just fell at freefall speed to 3800 USD, just like that! Not that it worries me. But the reason behind it interests me. In my opinion it can only be a "bag" of Bitcoin being dumped into the market because of the interesting price.
And what comes into my mind, the Mountgox coins that are released, are just waiting for decent rise to be sold. This is what I think has happened. The curators of the Mountgox lawsuit are dumping systematically into a raise of Bitcoin price, to get more for their coins. I can understand if it where so. But it would be so much smarter, to do it with a little less, and wait out the rise a little more. This way they are just holding back the market.
Graph is courtesy of Coindesk
I can be completely wrong, but my guess is close to the truth I think.
Oh well, eventually the Mountgox bag will dry up too, and then the only way is up!
Sincerely,
Pele23
From a EW perspective we just did a ABC, a normal correction pattern, the C doubled topped with the A at 4200$, but from what I can see the indicators are still pointing down, I would be happier if we had broken through the 20MA on the weekly time frame, an MA that has been a signal of dump this whole bear market, but we never even reached it during this rise, let's wait and see, but imo, we are going down, the price was heavily manipulated, we had a huge sell wall of 31Millions come up a few time just on bitmex!
TA is interesting, but it cannot predict not explain every market action... I feel this exact move coming up again in the next days...
Posted using Partiko iOS
Good TA can increase the probability of your trade going right, ofc it can fail, but most good traders have a really high success rate!
Let's wait and see, no one can predict what is going to happen in weeks
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