Bitcoin started September on a bearish note after another failed attempt to break above $7,500. The BTC developed a downward motion, approaching $ 6,000 support.
Crypto traders keep dumping Bitcoin on the back of general disappointment and “broken dreams” about new Bitcoin ETFs. And despite the fact that this is a threadbare theme, that’s been discussed too much lately, we shouldn't belittle its importance. A positive SEC’s decision could really breathe life into the entire cryptocurrency industry. Such a decision could have become the green corridor for large capital flows from various categories of investors. And since the launch of Bitcoin-based ETFs was postponed for an indefinite period, the market never received its "fresh blood", which made growth essentially impossible. In other words, it is the lack of new money in the system that remains the main reason why the BTC/USD quotes haven’t soared and broken above $ 10,000 yet.
There is another explanation of what is happening. Aggressive Bitcoin selloff is a doing of shadow manipulators, which keep actively dumping BTC from addresses that were considered frozen many years ago. According to recent data, a wallet, associated with a popular darknet site Silk Road shut down by the FBI 5 years ago for selling drugs online, seems to have been activated. Initially, more than 25 000 bitcoins were moved, and around the same amount remained frozen until the beginning of September. The sale of such a significant amount of coins couldn’t have been unnoticed - and it wasn't. It’s also worth noting that Bitcoin’s selloff by moving it billions of times using dozens of wallets on different stock exchanges coincided with the expiration of the futures contract on the CME exchange. Traditionally, this leads to a surge in volatility and local sales due to the revised positioning and market sentiment.
At the moment the market is facing the lack of information - the previous news has been already included in the forecasts, and there are currently no more apparent drivers. In this situation, it would be safe building your trading strategy based on technical analysis. For example, when the price holds below the 200-day moving average at $ 6600 mark, we recommend betting on further downside first to $ 6,100 area, and then, after the price breaks through the psychological barrier at $ 6,000 bar, we expect it to plunge down into $ 5,850 - $ 5,650 range, where you can set your take profit orders. The momentum gained from the triggered stop orders scattered in the immediate vicinity of the $ 6000 support contributes to this scenario. We believe, that before the market ventures to resume growth, market manipulators will undoubtedly want to create the illusion that bitcoin is doomed to an even greater decline. We suggest playing by their rules for now and rely on the trend, which remains exceptionally bearish.
