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.