February was a rollercoaster ride for Bitcoin (BTC) and the entire cryptocurrency market. Prices went from low to high to stable. At one point, the spike in trading volume affected the largest cryptocurrency exchange per volume, Binance. Amid the volatility, BTC was able to rise by 11% throughout the month. However, there are indications that the flagship cryptocurrency is going to hit lower lows this month of March as it is currently in the overbought territory.
Bitcoin (BTC) May Hit Lower Lows In March
The senior market analyst at Tel Aviv-based cryptocurrency exchange, Mati Greenspan, while talking to Bloomberg, said that the price of BTC spiked by 11% in February but a downtrend is now forming. However, he did note that the price spike experienced in February was a good sign. The total trading volume for BTC is above a 12-month high. BTC was able to break a six-month losing streak by closing in green in February. The exchange trading volumes aren’t the only high ones, the transaction volume on the Bitcoin blockchain is also currently at its highest levels within the year. While the market is still bearish, this spike in volume is cause for optimism.
Bitcoin (BTC) Price Today – BTC / USD
According to Greenspan, Bitcoin was unable to stay above the $4,000 level and this is why he believes a downtrend is materializing. However, it is important to note that the technical analysis isn’t always accurate. Right now, the relative strength index is in the 36 levels showing that BTC is in the overbought region. The technical analysis of Greenspan shows that the price may spike soon after a bearish correction. This may not be the case.
Last year, many analysts predicted that the price of BTC will spike significantly because of the data they gathered from the technical analysis. Until the year came to an end, there was no impressive bullish breakout. In fact, November saw the price of BTC fall significantly against the USD dragging the entire market down. So, you can never be sure that things will go a certain way.
Are Cryptocurrency Prices Manipulated?
The cryptocurrency market is still new. While cryptocurrencies have grown significantly over the last ten years, there is still a lack of maturity in the market. For starters, cryptocurrency markets can still be manipulated by some actors. This is one of the reasons why Bitcoin has some erratic price movements from time to time.
Right after the price of BTC reached its all-time high of almost $20,000, there was a rumor that the sudden surge in price was as a result of price manipulation using Tether (USDT). In November, the United States Justice Department launched a full criminal investigation into the cryptocurrency market to determine if the 2017 bull run was indeed manipulated by exchanges.
Last September, a report by the General Office of the New York Attorney stated that some exchanges can manipulate the price of cryptocurrencies because there isn’t enough protection to prevent such an abuse of power. Part of the report stated:
“Platforms lack robust real-time and historical market surveillance capabilities — like those found in traditional trading venues — to identify and stop suspicious trading patterns,” the report said.
Do you think the December 2017, January 2018 cryptocurrency bull run was manipulated by exchanges? Share your thoughts in the comment section.