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Bitcoin Price Plummets Following Price Manipulation News

October 3, 2018 at 15:21 by Arathur Stephen

Bitcoin price plummeted to the lowest level since 26 September following the series of negative news. On Tuesday, the Wall Street Journal shared an extensive article that discusses how Bots manipulated the price of Bitcoin.

Bitcoin price manipulation is major news from a regulatory perspective as it was mentioned by the US Securities and Exchanges Commission (SEC) when they rejected nine Bitcoin ETF proposals in August.

This shows that the US government is well aware of the manipulation of the prices of Bitcoin and other cryptocurrencies.  It was also referred to by New York Attorney General, Barbara D. Underwood, thus making it a major concern for both Bitcoin investors and supporters.

According to the report, the “integrity of the entire market” is at stake since cryptocurrency exchanges “tolerate” the abusive conduct. Bitcoin Price Manipulation defeats the clear purpose of its creation as a decentralized digital currency that provides a fast global transaction without a third-party manipulation.

In a bid to resolve the problem, the biggest crypto companies have set up a team that formed a consortium to operate as a regulator. However, the organization will appear as a toothless bulldog if it operates without legal backing.

In another development, the MGT Capital Investments was sued over an alleged pump and dump scheme. This cybersecurity firm was founded by John McCaffe, an influential and eccentric cryptocurrency advocate.

The investigation into the former MGT securities CEO by the US SEC was initiated last September. While speaking with CCN, the MGT spokesperson was quoted as saying;

MGT has the utmost confidence that the suit filed against them is without merit. This is not a departure from normal affairs in securities markets when share prices are down. Previous cases along a similar vein were thrown out without prejudice.

Pump and dump is a fraudulent scheme that involves a group of investors artificially inflating the price of cryptocurrencies in order to sell them at a higher price. In the end, traders who buy at top price lose the most.

Shifting gears to Bitcoin, how is the number one digital currency trading today? The market is mostly gloomy on Wednesday as cryptocurrencies are trading in the red. Bitcoin price dropped suddenly below $6,500 level as it follows the bearish trend. However, will the bears pull the price below the $6,360 level? What does the chart reveal?

From the weekly chart, Bitcoin price has moved by $3.97 (0.06157%) with a total volume over $2.10 billion. The price climbed to the $6,806 level on Friday, but today, it touched the weekly bottom of $6,428.

The 100 SMA is still below the long-term 200 SMA as seen in the 1D time frame which indicates that the path of least resistance is to the downside. This is an indication that the downturn could still resume from here.

Bitcoin price fell because the bulls failed to pull the price above the resistance level of $6,800. However, the price could slide further towards the $6,110, $6,000 levels if fails to remain above the weekly strong support.

Nevertheless, the price could revisit the support zone of $5,900 and $6,000 if the $6,200 level is broken. Additionally, the MACD line and the signal line are below the zero line which indicates a selling signal and an ongoing bearish trend.

Further, the Fibonacci retracement chart shows that Bitcoin Price is trading beneath the golden ratio zone and is now struggling to cross the 23.6% Fibonacci retracement zone. However, a massive bearish trend towards the $6,000 level should be expected if buyers fail to get support from the 23.6% Fibonacci retracement zone which is above $6,500 level.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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