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  • Blog \ Why has the BTC rate fallen below the $4,500? What do professionals think and what to do next?

    Why has the BTC rate fallen below the $4,500? What do professionals think and what to do next?

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    Andrew Verkholantsev
    CTO, HiCoTrading.com

    One of the reasons behind the cryptocurrency price fall is the conflict between the BCH coin owners who conducted hard forks of BCH dividing it into two coins: the BCHABC and BCHSV. During the first week of mining, miners lost $ 1 million. Participants switched to mining BCHABC coins, as BCHSV mining proved to be more expensive.  A day BCH hard fork was commenced, Craig Wright wrote in his Twitter that he will sell a lot of BTC to win the race and increase the Bitcoin SV hashrate for $. This message spreads fear, and other participants begin to sell BTC massively.

    The second reason. The BTCs located outside the exchanges are more widespread than the ones on exchanges. A large BTC holder can manipulate the price at any time, buy below the market price – for example, spending 1000 BTC to push the price lower; while other traders will start to trigger stops at different support levels, others will fix their losses manually. Making stops to redeem 2000 BTC. Such rigid manipulations may be more frequent until the BAKKT exchange is opened. Under price regulation of cryptocurrencies, such pumps/dumps will long not be seen.

    Third reason is the conspiracy between the banks and crypto exchanges. We are shown that the cryptocurrency has burst. There are less than 15% of private investors on the market who trade on the exchanges by themselves, and the remaining 85% are large trust funds which rely on algometric robots. Such a big dump is made to knock out 1x and show the whole world that it is nothing but a bubble. Buy cheap crypto, and then interrupt the new heights a long way, making the crypto officially a new kind of digital money.

    What are we left to do in such a situation – if your deposit is in the red, you observe the risk management, at the current level of $4300 you can buy more than 10% of the depot, put orders ladders for the purchase of $3600-3200-3000. If you are in the red, there is nothing more to buy, but you have a constant source of income, then 5-10% of the revenue can be used to buy crypto. Also, if you are in the red, there is nothing to buy, and there is no income, your money is taken on credit – then just sell the crypto assets and find a job.