Blaming "market manipulation" for the bear market sign of financial illiteracy

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Adriaan Admin

Administrator
Staff member
Jan 30, 2018
231
56
28
www.bitcoinforbeginners.io
#1
As we all have seen for sure there are so many that try to blame the popped bubble and the following bear market to "market manipulation" and even urged the SEC to investigate this, hoping that more regulation will come in place as a consequence, hoping that that will allow prices to go up again if those naughty manipulators are not able to suppress the price anymore! That is of course regulators' wet dream lol! Sure there is pump&dump in small cap altcoins, just like there is in penny stocks btw (despite regulations prohibiting it). But besides the arbitrarily designated forms of ILLEGAL "market manipulation", "market manipulation" is part of the whole game of trading, as trading is essentially a game where the participants are trying to outsmart the other. Participants that have more money than others just have more tools in their hands to play that game.

A tool that investors/traders can use to identify where the money is most probable to be going, including interpreting the actions of manipulative actions by the whales, is using analytical tools like in Technical Analysis. Sure setups may fail because suddenly a whale swims along unexpectedly or some catastrophic news event takes place (black swans), those are just the unknown unknowns that traders and investors have to calculate in their risk management.

But how likely is this "market manipulation" narrative in the way that many believe as the main cause for the ongoing bear market outside of normal market "manipulation" that is inherent to all financial trading? This article analysis the market and price development based on real data directly from analyzing the blockchain transactions themselves. From what I already thought, it all makes perfect sense to me: it is just a classic school book bubble scenario at play, caused by perfectly explainable events. Also what I am seeing is that the price of Bitcoin actually very well respects TA "rules" as the bubble followed by bear trend scenario unfolds.

Here is the article, implicitly debunking the so called market manipulation conspiracy theory: https://medium.com/chainalysis/the-great-bitcoin-price-dip-its-causes-and-a-way-forward-1199e9360adf
 
Jun 12, 2018
70
8
8
#2
This article analysis the market and price development based on real data directly from analyzing the blockchain transactions themselves. From what I already thought, it all makes perfect sense to me: