According to Lark Davis, a cryptocurrency trader and analyst, the whale game is effective as the price of Bitcoin has fallen below $34,000.
Davis said that in the new market structure, large bitcoin owners are taking advantage of the huge benefits of the drop in prices and are hoping that retail investors will sell their bitcoins.
“There are very rich and very powerful players in this market who are very good at manipulating the market. They’re good at playing the game, right? And they play the game with billions of dollars in the capital at a time. They shake the market with massive selloffs while at the same time shorting the market.
Then, when the market’s down, they take your Bitcoin that you panic sold after a 10% drop. Rinse and repeat. Gaining more Bitcoin, adding to their positions. This is the process of trying to shake you out of your position. Remember friends, don’t be whale food.”
Is whale about to repeat 2017 moves as Bitcoin fall from ATH?
In Bitcoin’s 2017 bull market, the top cryptocurrencies fell 30% or more multiple times, hitting a record high of $20,000 at that point.
According to data from CoinMarketCap, the current price of BTC is at $34,420, about 18% decrease from its recent high of $41,940.
A few hours ago, when BTC fell 10%, veteran trader Peter Brandt stated that the cryptocurrency leader “nowhere near” broke its parabolic uptrend.
Brandt pinpointed the end of Bitcoin’s last bull market cycle and said its long-term decline began to a low of around $3,150.