The Dutch analyst PlanB has long been famous for its famous application of the Stock-To-Flow (S2F) model to the price of bitcoin (BTC). This model predicts another price of bitcoin above $100,000 this market cycle. So far, this model from PlanB has proven to be one of the most accurate.
This time, PlanB does not come up with a prediction about the price of bitcoin, but shares an observation of him over the past few months during a podcast. According to PlaB, it seems that one or more parties behind the scenes are manipulating things quite a bit.
PlanB states that the price action of the past few months has been very interesting. Especially the downward price action. According to the Dutch analyst, such downward price action mainly took place during “Illiquid Hours”. So when most people were asleep. What this also means is that the parties that were selling at the time were not looking for the best price for their sale, but were expediently pushing the price of bitcoin as much as possible.
According to PlanB, an unmistakable pattern is visible. Every time there was a sell-off of bitcoin, it recovered in no time. Time and again a so-called V-shaped recovery was seen. PlanB clearly sees the work of large institutional parties in this regard. These parties want to sow as much fear as possible among retail, so that they can stock up on a large scale at a discount.
When enough chaos is created, people panic and panic sell or close their positions. When the worst of this chaos has passed, the major parties get to work. They are now going to buy back small pieces during the most liquid hours. Probably to keep the price low. This until they have bought enough. After that, the price can go up again.
The graph clearly shows what he means by the V-shaped recovery. This has now happened almost identically four times. We’ll know soon enough whether we’re currently in the fifth consecutive V-shaped recovery.