Scott Melker is addressing claims of market manipulation after Bitcoin’s sharp correction over the weekend.
The prominent analyst says the sudden move to the downside exemplifies why traders should always have a stop loss in place to protect their capital, and complaints that whales are to blame are misguided.
“Manipulation is printing endless dollars and bailing out failing zombie companies. The stock market is completely fixed. Bitcoin is a free market. Whales dumping on you is not manipulation. There’s a buyer for every sell order.
Everyone screams manipulation! when they lose money – generally when they are on the wrong side of a significant move. You losing money does not mean that a force is conspiring against you. Just means you lost. If you think the market is manipulated, don’t put your money in it.”
Melker says he expects BTC to continue trading sideways in the short term.
“I always mention that a 50% retrace is expected and common after a major impulsive move. I had to zoom in to the 5-minute chart to see it clearly. Perfect 50% retrace of the drop. Usually followed by continuation, but anything can happen.”
Fellow analyst Josh Rager says BTC’s next moves may be pivotal. In the near term, he’s looking to see if BTC can remain above $8,600 and reclaim the $9,150 area.
“If it can hold here and bounce up to $9,150 and reclaim that area, it will probably continue to move on up…
But of course, if it comes back up here at all and rejects off $9,100 or $9,000, and comes back down, it’s probably going to continue to come back down from there.”