Just like the main stream media and politicans, whales manipulate the market with the use of fear. This is not a new trick, they want someone to do or not do something, they wait for an event that can be exploited to push an agenda, the same thing goes for whale traders.
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In this case there is 2 news stories being exploited to cause fear, one the supposed "Binance Hack" and the second "judge rules crypto commodity. So what the whales to is once they have some good stories that sound scary enough, they sell huge amounts of Bitcoin. The price Dips and they take that same money and buy more Bitcoin cheaper with the money they just made from the sell. Some conspiracy theorist even believe that the stories are fabricated, but I think prey they are wrong.
Now lets get into the two rumors.
- Binance was not hacked, people using third party trading tools were hacked and they were the only people affected, but hey people need bold headlines to get attention to their articles right. https://cointelegraph.com/news/possible-hack-of-third-party-tools-affects-binance-exchange-users
- Judge Rules Crypto Commodity, well a judge did rule this but only so that the party in the lawsuit. If the judge did not do this then there would have been no way for the plaintiff to collect damages from the defendant. This will have very little impact to the future of Crypto if any. The SEC already said at the hearing that they stand behind Crypto.
Lastly lets take a look at the TA from the sell off and see what happened.
Looks like we dipped but we bounced off of the support line that used to be the resistance line. Hopefully this dip will get more volume into the market, people who have been watching and looking to buy in who might have missed the last chance now have a chance to get in.
Perspective is all you need for things like this, you can take it as a bad thing, or you can look at it as a discount on Bitcoin and the alts, thanks to the whales. Like most of you I would love for Bitcoin to run up already but, whether it takes a week or a year makes no difference, it will happen!
Update from Binance
https://support.binance.com/hc/en-us/articles/360001547431-Summary-of-the-Phishing-and-Attempted-Stealing-Incident-on-Binance
I am not a financial advisor and this is not financial advice, invest at your own risk.
It is just this volatility that the traders want. Also, the patterns in the market seem to be real good setups for the FUD recently as much as we saw this correction coming a while.
While the trader in me hurts when I buy before the bottom, the HODLer in me hurts when I have a FIAT balance. So torn!
Needless to say, it is not time to get depressed or sell off. I am buying the dip in patient, measured limit buys and knowing that anything "lost" right now will be found when it corrects......again!
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Right. This pay check I am buying the dip as much as I can.
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Yeah it's sad.... for people who have just started engaging in this beautiful community :)
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yes, same thing happened to me when I first got in with the China FUD. lets hope this one is short lived.
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That is well said my man. Market manipulation is an ancient phenomenon. Like all problems, this one too has simple yet very difficult to implement solution.
Worth of anything is decided by the people. Let's not let the traditional economists fool us. Crypto's have intrinsic value well beyond what traditional parameters could measure. It is not the value in the sense of X coin is worth Y amount of dollars. It is the power to change not just the face but the very landscape of the financial system.
We all need to remember whales can only manipulate and not decide the value of crypto. Value of crypto was decided when people decided to bring it into existence.
The truth is that value is staring the financial system in the face and bankers are wetting their little boy pants. Whales know this and they will push the values down as much as possible so they could buy again.
When the next FUD happens, remember that prices will go back to the mean no matter what the news is telling us.
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Absolutely, some of us are aware of this game and sit tight, however many are taken by these moves. Yes the price is made by us but these people can finagle it to serve their cause. Case in point Tokyo’s Bitcoin Whale Has Sold $400 Million, And That’s Just The Start - Bitcoinist via BTCnews on iOS.
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I think the actual reason why the price dipped because a whale actually sold 35k bitcoins. See it here
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Right but it’s the timing of it. People read the headlines and think not much until the price drops from a whale sell then they get scared and panic sell.
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