Bitcoin Price Manipulation Is One Of Three Key Market Questions For This Week

Various financial markets have several key questions that they will answer to us this week. Some are serious, and some are not so serious, and one is bullish. First, we’ll start with the critical one and that is Bitcoin. Last week Bitcoin fell below the key $50,000 psychological price point on Friday. It clawed its way back above that level Sunday night as the Nasdaq rallied on Friday, but it is still in big danger of going down again. If it does the selling could easily pick up on it. Everyone is watching the $50,000 Bitcoin level.

Frankly, the crypto market has the earmarks of vicious manipulation surrounding it. There is one big warning sign on the Bitcoin chart and that is the fact that while it has been above $50,000 the down days for Bitcoin has seen much bigger trading volume on the down days than on the up days. Check out the on balance volume indicator on the bottom of this chart, which makes this clear.

Once Bitcoin went above $45,000 in February the on balance volume indicator went sideways even though the price went up to $65,000. This is a sign of distribution and you rarely see such a big divergence between this indicator and any ETF or stock when it goes up as strong as Bitcoin did. It is likely some form of vicious price manipulation, which there are things that can be done in Bitcoin that are illegal in anything else as cryptos have little regulation to them at all.

Before the SEC was founded stock manipulation was actually legal and there existed what were called “stock pools” that engaged in vicious manipulation.

People such as Jesse Livermore and Joseph Kennedy were involved in such pools, but so were many others whose names are forgotten today.

One of the biggest investing publications of the 1920s and 1930s was a journal called The Magazine of Wall Street edited by Richard Wyckoff.

I got a hold of a couple of old issues a few years ago and this one from 1925 details right out in the open how stock pools operated. There is a lot to learn from old classic trading books and publications.

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