Bitcoin has broken bearish out of a bullish pennant in the last 24 hours, as sellers battle to keep BTC below the major $6,800 resistance above. In the absence of any detrimental news and with a noticeable decline in BTC/USD shorts on the futures market, we can assume that the -2.10% decline from yesterday’s close is a minor manipulative movement.
So why would anyone want to drive BTC’s price down right now?
Last month, Bitcoin was rising strongly towards its long-standing sloping resistance after rebounding out of the $5,800 danger zone. Just as the asset was within $100 of finally breaking this level, a massive 10,000 BTC short position was placed and a huge volume of Bitcoin was dumped shortly after; with the #1 cryptocurrency crashing $2,000 in 2 weeks.
Right now, Bitcoin is close to reaching the downtrending resistance again, after taking 18 days to recover from the previous heavy sell-off. Not only this, but there is also now a huge bullish signal that has just appeared on the one-week chart that spells big news for the cryptocurrency going forward into Q4.
Because of this, it makes a lot of sense for market manipulators to try and crash the asset’s price as much as possible so that they can buy back in cheap before it really starts to boom.
This article appeared first on Cryptovest