BTC Pump Trap and Tragic Dump - 28th August, 2024

It's been a trending news since 24th August when the founder of telegram got arrested in France. His arrest has brought about serious concerns in the Ton Blockchain. The Toncoin dropped badly and has been unable to recover its price due to what is on ground. After a five-hour outage, the Ton Blockchain restarted successfully.

This news brought about shutdown in Ton validation and transactions via other Ton related wallets and Telegram itself had lots of malfunctioning in terms of bots and validation of transactions.

There was news yesterday that Pavou was released but wasn't released fully. He was released from police custody and is now transferred to court. He faces a $5M bail and suspension of movement from France. The Ton Blockchain's downtime was also attributed to the overwhelming popularity of DOGS airdrop which launched on Monday.

This wasn't just about the Ton Blockchain, the crypto space in general was affected. The value of dollars dropped in the market and a lot of sellers went offline, those whose prices were higher. Exchanges like bybit, binance and Bitget had serious network issues due to multiple operations.

Ton wallet too was facing severe challenges that limited access. There was also an initiated campaign to release Pavel which did affect the performance of Toncoin. As the Blockchain came online after outage, there was an increased trading activity and Ton's losses were minimised to 1%. In the general market, there were lots of liquidations in the morning of yesterday which kept a lot of traders misplaced.

Around 2Am, bitcoin dropped in price from $62k to $57. This undoubtedly was a trap when it surged the day before from $58k to $62k. Most people thought it would go back to $65k while others still had bearish motions and traded bitcoin on shorts. Prior to their analysis and market conditions, there was a dump in bitcoin which affected the prices of most altcoins.

As of yesterday, nearly 50k bitcoin's have been withdrawn from exchanges which indicates a bullish trend as investors move their assets for long-term holding. This reduces sell pressure and optimism that bitcoin will see significant price appreciation. Some may be wondering why bitcoin pumped to $65k and why it did dump.

Bitcoin pumped due to the remarks made by Fed Chair Powell which made bitcoin see 10% gain. But this poses concerns as it didn't surpass the $65k mark but reduced as expected to $61k. Now the question is, what lies ahead of September? A surge of major dump?

I did position myself in a way that I'll short BTC when it gets to $62k and it did give me substantial profits at $58k. The market they say have been playing with people's emotions and if predictions have it right, September would be a blood bath for the crypto space before the main take off just as it was done last bull run. Let's do some analysis on this.

Last bull run, there was a dip in the market where bitcoin dropped to $39k before making it way into the bull to 69k as of October. Currently, the market has gone past the $59k mark and is hovering around $60k. Who knows? The market is still very bearish as the fear and greed index says 30%.

To be a successful trader, you won't be dependent on a particular technical tool to produce accurate signals. Combining them and following market news will help you make informed decisions

Sreenshots are from my bybit and twitter app

Disclaimer :Any financial and crypto market information provided in this post was written for informational purposes only and does not constitute 100% investment advice. It's just basic knowledge every crypto trader or investor should have