Bitcoin Allegedly Manipulated During Sharp Price Drop

A prominent Bitcoin analyst speculates that the recent market decline is not due to bearish sentiment but rather manipulation, contrasting the typical trend of price drops. Despite negative market news, Bitcoin experienced a 7% drop in 24 hours. However, analysts believe that the correction may be part of a manipulation tactic rather than a genuine market downturn.

Bitcoin Market Manipulation Alleged Amidst Sharp Price Correction

In an unexpected twist, a prominent Bitcoin analyst has raised concerns over the recent market correction, suggesting that it may not be the result of typical bearish sentiments but rather a potential manipulation scheme.

On May 1, 2024, Bitcoin experienced a 7% plunge in its trading price within 24 hours, sparking widespread concerns among investors. Initially attributed to negative news in the financial markets, the crash has taken a surprising turn with the emergence of allegations of market manipulation.

Rekt Capital, a renowned crypto analyst, shared his analysis on May 2, asserting that the latest price correction in Bitcoin was largely driven by manipulation. Rekt Capital's analysis points to a possible orchestrated effort to influence market sentiment and control the trajectory of Bitcoin's price.

"On the daily timeframe, it looks like yet another manipulation before #BTC takes off," Rekt Capital tweeted. "Plus, LMACD reintegrated the reset zone and could be crossing bullish promptly."

Despite the recent market volatility, Rekt Capital believes that the underlying bullish sentiment for Bitcoin remains intact. While acknowledging the impact of negative market factors, he emphasized that these do not negate the long-term potential for Bitcoin's growth.

In a subsequent analysis, Rekt Capital outlined a potential correction scenario for Bitcoin, predicting a possible -38% decline in its trading price. According to his analysis, the price could potentially drop to as low as $51.5k before rebounding.

"Unfortunately, #BTC closed the monthly candle below the $61,300 level we were monitoring carefully," Rekt Capital tweeted. "Hopefully, it is just manipulation, but if we stick only to the technical aspects, the 2Monthly chart just printed a reversal."

Peter Schiff, a prominent Bitcoin skeptic and US Global economist, has also expressed his negative outlook on Bitcoin. Schiff believes that the $60k level has become a resistance level for the Bitcoin market, suggesting that investors should sell and exit the market to avoid potential losses.

"Notice on this shorter-term #Bitcoin chart that $60K, which was support, has become resistance," Schiff tweeted. "Bitcoin is forming a short-term, head-and-shoulders top... The downside objective is $54K."

While bearish sentiments have been expressed by some, it is important to note that the Bitcoin market has historically exhibited significant volatility and resilience. Past halving events have demonstrated a consistent pattern of substantial price surges, highlighting the potential for Bitcoin's long-term growth.

Despite the recent market correction and allegations of manipulation, the underlying bullish sentiment for Bitcoin remains strong. Investors should exercise caution and conduct thorough research before making any investment decisions, understanding the inherent risks and potential rewards associated with cryptocurrency investments.