I penned a post the other day suggesting that the PPT was allowing the market to rebound after the large dips. Today an article came out from Graham Summers which mirrors my position.
His article is titled “The PPT is the Only Thing Stopping an Outright Crash” and it points out that in 2017 the valuation of the market was behaving abnormally. The value of the market rose without any retracement for the entire year. Historically this is an anomaly. Bitcoin finally retraced its amazing rise and the say goes that the higher an asset rises (without corrections) the lower it will fall (from its support price). This is why I am assuming that bitcoin will continue its slide for the short term. What makes it difficult to predict is the markets are manipulated so what was once the rule of thumb has changed.
He states that the PPT handiwork can be seen by looking at the chart for the S&P 500. When it broke the 200 DMA the PPT acted to boost its value about 3% within a hour. The 200 DMA, 100 DMA and the 50 DMA are all critical levels that technical traders use to predict the future value of the market. He also states that the only thing stopping an all out crash in stocks was clear and obvious intervention in the markets by the central banks.