A well-known trader and respected analyst believes that the futures market can not affect the cost of the first cryptocurrency.
There is no convincing evidence that the bitcoin course was manipulated by large investors, says trader and technical analyst Peter Brand. On his Twitter account, he commented on reports that the fall in the cost of Bitcoin could have been caused by the launch of futures on the coin by the Chicago-based CME and CBOE platforms.
“There is no evidence that” whales “shorted the crypto-currency market. Weakness in May, it seems, was due to the liquidation of the long positions of small individual traders, “wrote Brand.
He noted that futures cannot influence the cost of bitcoin since there are a limited number of short and long contracts.
“The number of short contracts always corresponds to the number of long contracts. Always. Regardless of the market, “the trader added.
If the futures market had the same effect since the beginning of the year, as in December 2017, bitcoin would have demonstrated the same volatility, and significantly accelerated the price reduction, Brand believes. However, there were three major corrections of the market, and each of them fixed lower sales volumes.
The community of crypto-enthusiasts ‘The Crypto Fam’ confirmed the analyst’s opinion. In their Twitter account, experts wrote that a decline in sales in subsequent adjustments after the first drop in the price of bitcoin in January shows an end in the gradual decline of value.
“Not only the sales volumes went down, but the falls themselves became less deep. Each element of each new decline is less steep than the previous decline. RSI, the momentum indicator, also shows that sales were less active. In our opinion, the trend is levelling, and the bearish trend ends with fuel,” they note.
This means that if futures were the main factor of previous corrections, the value should have fallen as much in subsequent corrections. However, sales volumes are gradually falling, which means that small retailers are eliminating long positions, according to Brandt.