The correction of Bitcoin started with announcement and is not finished yet.

While the Bitcoin actually moved only slightly down on Thursday, took place on Friday morning from 04:00 am the actual crash. I happened to be awake and could follow it live. The exchanges Bitfinex and Bitstamp partly had a price difference for the Bitcoin of over 1.200 USD. Some exchanges suspended Bitcoin trading for a moment. On Bitstamp, he was down in low at 6,178 USD. Between two ticks there was partly a delta of over 400 USD. Absolutely crazy! For the rest of the day, Bitcoin spent around 7,000 USD developing a Bear Flag. It goes without saying that all Altcoins were swept along in the wake of Bitcoin.

The logarithmic 2-hour chart of Bitcoin (Bitstamp on TradingView) shows the movement among other things the last two days. But it also shows the ratio of the long positions (green) to the short positions (red) on the trading platform Bitfinex in the lower part of the chart. When the number of shorts fell by one-third (!) on Thursday at 02:00 am as if by magic from one moment to the next, the fall of Bitcoin began. Coincidence? Definitely not.

If you want to hear my theory. It’s always the same pattern. Bitfinex with Tether in the luggage gets problems. You remember? 850 million USD, which was questioned by a US regulator. There was a red candle on the far left of the chart. The Tether Coin crashed. Bitfinex became active and started to push the market. Until the short squeeze began, which drove the market further up. The final stage, up to 8,200 USD, was then funded by FOMO of retail investors lured into the market. Tether recovered and even recorded above one USD. Bitcoins bought down favorably could be sold up. Until it was enough for some air again. Because you can also earn on the way down. I’m curious how long that will work.

Except for three small Ethereum trades, I closed all my open trades until May 15th. I currently have a cash quota of 97% in my eToro account CryptosWithB66, which is the real account of this blog. I assume that Thursday and Friday this week are only the beginning of a major correction and we will see much lower prices, which in turn will be very good entry prices. And that’s what I’m after.

Oliver Michel

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