Is Bitcoin Volatile? No. It is Manipulated.

As the price of bitcoin dropped $500 value in a few minutes, our private live chat woke up with questions:

"Wow what just happened lol
That’s a lot of stops gone.."

When I double checked my 'Trading View' of the price actions, the daily price move at this range did not have any effect on my trading signal.

I replied

from the 12 hour bar view, there is still a ways to go before a buy signal comes in.  the trendline has been broken, but prices are just above it... not very significant yet.  The 1-2-3 bottom is 'in the works' but no confirmed... and the Exponential Moving Average has not come close to crossing.
... so if you are zoomed into the 5 minute bars, you are whale food.

But I'm sure it did hit many traders stop losses and turn their potential winnings into small losses.  Thousands of traders across dozens of trading exchanges just lost a little bit of money.

You may feel the same as this frank reply:

 Yeah I just get punished for day trading 

Bitcoin Prices Are Manipulated

I have a conspiracy theory about AI BOTS taking advantage of noob day traders in cryptos.  They are making a killing because new traders don't know about them. 

Back in March of 2015 I wrote about the fact that Bitcoin Prices Are Being Systematically Manipulated. I share a basic outline of how stock market prices used to be manipulated before the 1930's - and it's easy to infer that today's trading bots are doing all that in the price of bitcoin an all other cryptocurrencies, plus they are coordinating these market moves with fake-news, social media pump manipulation, timed perfectly with high leverage futures contracts... where the profits are actually made.

Step AWAY from the 5 minute bars.

Below is a trading chart that is watching for trade signals in a longer term view using the 12 hour bars, you can easily see the crossover of the moving averages.  This kind of distance is recommended and required, if you want to stay out of the reach of the systematic manipulation of bitcoin prices.

 

Bitcoin Price is a PERFECT target for this kind of manipulation, and if you intent to trade bitcoin as a speculator, you *will* lose money unless you understand exactly how the range of power that these computer programs now have over the short term price levels.