Because that's what's happening really. I posted something similar about Litecoin ( LTCUSD
) some days back. Now, it's Bitcoin's turn. The move started a few months back and active investors with REAL money, got in at the $4000 to $4500 price levels. If you got in later, you weren't paying attention, or your "gooroo" was asleep. Anyway, no one in their right mind would just leave their positions open after a 200%-300% profit without taking out some profits. Maybe they just recovered
their previous massive losses. Maybe they just got their initial capital plus some profits out. But people need to get paid. That's it. Those VERY FEW who own and control the most manipulated exchange-traded asset in the history of the world decided to pull the hand-brake here. So, the rest of us with smaller stakes (from a few thousands to the low seven figures) think it's a good idea to lock some of our profits. Guesses from now on? No, thank you. Levels and flags and shoulders are not very useful IMO because BItcoin
is a controlled crypto. So, we just continue to do what we did from the beginning. High time frames, and greed management. Maybe it will resume up, maybe not. If it does, we simply re-enter at the previous highs. If not, we keep our money out, and wait for the next move (or park our capital to low-risk paying alternatives like closed-end funds that trade at a discount until the move resumes).
Good luck to all trading with real money, and my thoughts go to all HODLers. I admire your stomach and dedication.