Bitcoin is currently sitting close to a crucial resistance level at $117K, and the atmosphere is charged with anticipation. There are two major forces at play here: market manipulation and psychological factors, both of which could have a significant impact not just on traders, but also on businesses looking to enter this space.
Market Manipulation: A Double-Edged Sword
Bitcoin's price action around this $117K resistance has some traders scratching their heads, especially with the market being so volatile. Manipulation is rampant, as market makers and whales deploy tactics like spoofing (placing fake buy/sell orders) and wash trading (creating fake volume between controlled accounts) to shape market sentiment. The aim? To mislead traders about the true market depth and liquidity.
But here’s the rub: while market manipulation can create false breakouts, it can also suppress genuine upward movement. This keeps retail and institutional traders on their toes, second-guessing their instincts based on fabricated price signals.
The Psychology Behind Traders' Decisions
When it comes to Bitcoin's $117K resistance, psychological factors are as important as technical ones. Round numbers are always a big deal in trading psychology, so traders are naturally inclined to see this area as a significant point of resistance or support. The fear of missing out (FOMO) can also create waves of buying momentum, especially if the price eventually breaks above $117K and heads toward new heights.
CEOs and Crypto Payroll: A Growing Trend
This isn't just a trader's game; small and medium-sized enterprises in Europe are also feeling the pull of Bitcoin's potential. They understand that Bitcoin could offer some much-needed financial stability, but they must also comply with strict regulations under the EU's Markets in Crypto-Assets Act (MiCA). This brings its own set of operational and compliance hurdles.
Whether you see Bitcoin as a strategic asset or a regulatory headache, it's more than just a trading issue; it's a business consideration, too.
