Bitcoin price artificially lowered? This is what a well-known analyst claims

For the fall Bitcoin prices and other cryptocurrencies suit financial institutions that want to cheaply buy BTC and other tokens. This is what a well-known analyst on the Preston Pysh PlanB channel says, presenting his thesis in the last podcast "Bitcoin Fundamentals".

The recent fall in cryptocurrency prices has been one of the biggest in the short but turbulent history of blockchain-based money. Bitcoin lost 50% of its price, but there were too altcoinywhich were overestimated even more during the month. 

Cause? Most will point out without hesitation Elon Musk. The controversial billionaire first talked about cryptocurrencies in superlatives, Tesla purchased a large BTC package, worth $ 1,5 billion, and then announced that it will be possible to pay with cryptocurrency for the most fashionable electric cars. The price of BTC was rising rapidly, setting new records. It didn't last long though, because Elon Musk "he realised"that digital money is poisoning the environmentbecause to handle the transactions and their extraction you need electricity, certainly from coal-fired power plants. And he announced that Tesla is giving up cryptocurrency payments because they are not ecological (although in fact they consume less energy than, for example, the banking system or gold trading).  

This caused a sharp decline in the market, but experts are not entirely sure whether it was the strength of Elon Musk's tweets or the invisible hand of the market was not so invisible and helped a lot. 

Price action at the worst hours

In the recent Bitcoin Fundamentals podcast on the channel Preston Pysha Plan B. He suggested that the impact of Musk's tweets - if it ever happened - could be just one of the reasons for the discount on the cryptocurrency market. He checked Bitcoin Profit, that is, who and why would it be profitable to lower the BTC price. And he came to interesting conclusions.

- price action, which we witnessed last month, and especially the declines in the last days of May, always took place during the illiquid hours of the market. So it was a deliberate action to lower the price. The sale was not carried out by someone who would want to earn as much as possible USD for their Bitcoins. The sales activities were conducted during periods of illiquidity in the market to get a good price, so it was a sale with the intention of lowering the price - he says.

Why lower the price? The answer is simple: to buy something cheaper, which in our opinion is worth much more. And also to buy for large amounts. It doesn't really matter for individual investors, but when buying financial institutions that invest millions or hundreds of millions of dollars, it has a big impact on the price. When buying during downturns, you can of course buy cheaper without initiating another growth. 

Actually, if you look at the price charts, like the daily chart for the last few months, you'll see that all those destructive sales, all that sales that incidentally happened (oddly enough) at the end of each month, all those sales were bought in within one or two weeks. It was like a V-shaped recovery that happened within two weeks. This, too, is a bit of a characteristic to me of institutional purchases that have deterred people from taking positions. First, they scare sellers and ordinary people out of their positions, or even liquidate them, and then in the following weeks they buy themselves. This is especially effective if you sell and lower the price in irregular hours and then buy in small portions in liquid hours. In fact, I've been watching it since January, so for the last five months. In my opinion, this is a very, very bullish signal - underlines PlanB.

He also showed his opinions on the chart.

It is to be clear from it that the price is first artificially lowered in times of lower liquidity, and then in small BTC packages they are bought back. He is right and there are more bullish chords waiting for us? Or is it a reality enchantment? Time will tell…