Vadique Magenta

Between Manipulators and the Forces of Nature: How Bitcoin Market Works

There are no manipulators: cease your struggles and become one with the market forces.
Between Manipulators and the Forces of Nature: How Bitcoin Market Works

When I see hoards of young and inexperienced traders musing about manipulators and puppeteers, I am amused. They believe that some particular entity can control the price of an individual asset or the entire market as a whole.

If so, then God is just an old man in the clouds.

Yes, of course, there are significant levels where redistribution of assets between the participants takes place. Yes, at these levels, smart people take money from not very smart people. Yes, there are news cycles that will affect the overall market’s mood. Yes, there are some cases when the price is heavily influenced by large orders or by means of high-frequency algorithmic robots. All this is true, but...

Part of the market

The political insiders, the managers of large funds and groups of big players who enter conspiracies to enrich themselves- they are all part of the collective consciousness of the market. Like the archer and his arrow, market participants and the price are one with each other, and it is impossible to be entirely sure if the archer guides the arrow, or the arrow guides the archer. What does all this mean?

It means that even very big players, upon entering the market, become subject to a force of nature. Yes, they are piloting formidable battleships rather than fragile dinghies, but even they cannot completely bend the ocean to their will. How many examples does history provide of failures by large banks and funds? Without exception, they were all confident in their powers.

Respect the market

Venture into the market as sailors do the ocean, as miners into the coalpit, as samurai into battle. Do this not as if it was the last time, but the only time, freeing yourself from the memory of past victories and defeats.

Be a blank page. Forget that last month you made enough to buy a sports car, or last year lost half of your assets. All that is completely irrelevant. There is only the price, the market participant, and what happens between them here and now.

Why do I say this?

Because many times have I fallen and risen because I have been on both sides of the barricades. I have been the ruler and the ruled. I have been inside the ring and out. And I have learned that, no matter how powerful your boat is, sailor, the ocean is stronger!

Uncontrollable

When you think that you have everything under control, it’s an illusion. At any moment, something can go wrong and a storm can rise up that will wash away the markings on the sand, the idle onlookers and the coastal inhabitants, as the ocean opens its bottomless gaping womb and swallows all. Respect it, and perhaps you’ll be lucky enough to survive and learn something in this merciless school of life.

I am often approached by attorneys, bankers, lawyers, businessmen with the debris of their deposits after another storm, and all of them confess that the market has been the most serious trial on their professional path. This is true.

His Majesty the Market transforms everyone’s ideas about the very nature of money, allowing you to touch this exhilarating and ever-changing flame that can be warm but can also be scorching.

And what do the big players do? Like metal workers, they hit the molten hot price with a hammer. As in the Large Hadron Collider, they subject the price to bombardment by particle beams. Like in a stress test – they hit the concrete wall along with brainless dummies. Do you understand what I’m getting at?

All this works well while the elements let you put your sails to the wind. But if the storm begins, experienced seafarers prefer not to leave the quiet harbor ...

Distractions

So, by and large, manipulators exist only in your head. And your fantasies about them make it difficult to see the true nature of the market, as something unconscious and immense, something that is alive and always changing, something magnetic and entrancing...

If I were asked what the market is most like, I would probably say that it’s something unique and incomprehensible, similar to Stanislav Lem's "Solaris." Perhaps so...

This intense interest in the actions of major players and constant attempts to unravel their plans grow into a kind of paranoia. All everyone does is talk about the “whales,” check wallet balances and calculate current pricing for special-order news...

I ask you only one thing: free yourself from the thought that someone is running the market! It's impossible. Stop evaluating the situation with the help of your flawed “human” notions. If you follow this advice, you will make substantial progress toward understanding the market as something living and real, not something manipulated and artificial — and then, something ineffable will make itself known to you…

May the force be with you.

Examples from the storm

For particularly curious readers, I made three "photographs" from the very heart of the storm, when Bitcoin corrected by 70 percent and dragged the rest of the market into the abyss. What was that? The self-manifested nature of the market or the actions of manipulators? You decide…

1_18.02

The price at minimum values shows record volumes, after which the market reverses.

2_18.02

Within a day, a critical mass of transactions is carried out in the range of $6,700-$7,800.

3_18.02

At the level of $7,800, a mysterious "iceberg" appears, which does not allow the price to go lower.

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Daniel Osten

Short Break for Investors as Bitcoin, Litecoin, Monero, NEO Prices Freeze

Bitcoin critical support still holds, but the future is uncertain. The market is frozen by indecision.
Short Break for Investors as Bitcoin, Litecoin, Monero, NEO Prices Freeze

All that the market could achieve by the end of the week is a continued state of uncertainty and indecision about taking the initiative, shown both by bulls and bears. Nevertheless, the data of technical analysis indicates that on Friday and over the weekend the situation can evolve more rapidly and, possibly, dramatically.

Market capitalization grew by a tiny $5 bln in the course of the day , and the assets are exhibiting multidirectional movement. Most of the growth is in altcoins: in the first 100, of special note are Tron (plus 35 percent) and Ontology (plus 30 percent) which, by the way, has been growing steadily, even against the market, since the launch of the project. In the top ten, EOS distinguishes itself once again, gaining 10 percent.

Card

Crypto not welcome in India

Despite the success of individual coins, the general trend does not leave any room for doubt. The news about the alleged ban of cryptocurrencies in India added fuel to the fire. Later, it turned out that actually, it was not a ban, but some restrictions imposed by the Central Bank of India on individuals and legal entities that deal with cryptocurrencies. The market’s reaction was not too acute, but this news is a clear example of the new wave of FUD that we spoke about yesterday.

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BTC/USD

Bitcoin spent the last 24 hours in lateral movement within a small price range from $6,600 to $6,900, and at the time of writing it’s trading exactly in the middle - at $6,750. Reduced volatility has led to the creation of an equilateral triangle which should be resolved soon. The price nearly reached the apex of the triangle, once again confirming the lack of initiative in the market - usually, such triangles are already activated at three quarters of their height.

Short Break for Investors as Bitcoin, Litecoin, Monero, NEO Prices Freeze

Taking into account that BTC has not been able to break away from the boundary of the ascending channels, as well as the general downward trend, we assume that the price will exit down from the triangle. The first decline target is $6,600, then $6,000 and then - according to the scenario that we described just yesterday.

There is still a chance to push off the current values ​​and take an excursion upward, in which case the goal range will be squeezed between the 0.618 and 0.786 Fibonacci extensions and the price levels of $7,150 - $7,300. It is important to understand that slight local growth in the current situation does not negate the possibility of further decline.

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LTC/USD

Litecoin continues to loiter on the bottom, with an increasing risk of making that bottom even deeper. On Thursday, the volatility of the asset decreased significantly, as did trading volumes. Now it’s a hostage of the situation, and does not have any independency. It doesn’t look any better or worse than the market, but given previous “successes,” it’s not attractive to investors.

Short Break for Investors as Bitcoin, Litecoin, Monero, NEO Prices Freeze

The range of LTC fluctuations on Thursday was only $5 - the price chart practically stretched into one long thread. Some resistance from above is given by $120, below there is $110 and the boundary of the descending channel as support. A local Bitcoin reversal could help its little brother reach up to $130, but there are no signs of that for now. In case of decline, all bear targets remain relevant: after breaking through the support, we can expect a fall to the region of $100.

NEO/USD

NEO is in a situation that is very similar to Litecoin, so let's be brief. Lateral trading can either become a good springboard for growth or a future resistance in case the price goes even lower. The activation of the global wedge (red convergent trend lines) doesn’t look realistic at this point.

Short Break for Investors as Bitcoin, Litecoin, Monero, NEO Prices Freeze

The key NEO support is at the level of $42 - $43, and the intermediate support is at $45. Under the less likely growth scenario, the first target for bulls is located at the 0.5 Fibonacci expansion - exactly $50. Further, buyers will encounter resistance in the form of the boundary of the ascending channel, which can be difficult to overcome.

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XMR/USD

Monero looks somewhat better than LTC and NEO, but only due to the fact that the price is not contained by the nearest descending parallel channel. The buyers deserve no credit for this, however - XMR just fell out of it, without volumes or enthusiasm.

Short Break for Investors as Bitcoin, Litecoin, Monero, NEO Prices Freeze

The level of $160 seems to be a good aid for investors: the price has rebounded from it 3 times already, although the next storm in the Bitcoin Sea will have no trouble punching a few holes in this support. Now, as before, the bottom is at $150 - it’s enough to look at the chart and observe the powerful mirror level to confirm the truth of this. In case of descending to these depths, we expect a worthy response from the buyers, and encourage our readers to consider purchasing this asset.

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Andrew Strogoff

Bitcoin, Ethereum, EOS, Ripple, NEO Return to Downtrend: Price Analysis, June 5

Bitcoin, Ethereum and EOS lose momentum, the top 15 cryptos are in red today
Bitcoin, Ethereum, EOS, Ripple, NEO Return to Downtrend: Price Analysis, June 5

Crypto coins seem to return to their downtrends again as almost all the top 20 cryptocurrencies have lost some positions in the past 24 hours. There is no evident reason for them to fall and those downside tendencies may be part of local downward corrections.

As for interesting news, Vitalik Buterin, Ethereum’s founder has revealed that his project is able to process 100 mln transactions per second. He explained that sharding along with Plasma (second layer) will allow the Ethereum network to solve scalability problems.

Another interesting thing to pay attention to is that Ripple has announced plans to donate $50 mln to conduct research works and to accelerate cryptocurrencies’ adoption.

Bitcoin (BTC/USD) Price Analysis, June 5

BTC/USD Hourly

Bitcoin seems to return to the downside tendency as BTC price has lost almost two percent in the past 24 hours. BTC/USD managed to establish a temporary upside tendency during the weekend, which was a part of an upside correction. However, on Monday BTC/USD started to decline.

BTC/USD Hourly

Let’s have a closer look at what is going on the hourly chart. Bitcoin has broken through the red ascending trend line and moved lower meaning it has stopped its local uptrend (part of an upside correction). However, BTC/USD jumped off $7,341 support area, which prevents the currency pair from further downside tendency. The possible ways for BTC/USD are the following:

  1. Red scenario (bearish). The currency pair will break through the closest support area at $7,341 and move lower targeting the next support area at $7,199.
  2. Orange scenario (neutral). BTC/USD will stay within the current range between the resistance area at $7,565 and the support area at $7,341 jumping off both levels.
  3. Green scenario (bullish). Bitcoin will cross the closest resistance area at $7,565 and move higher, targeting the next resistance area at $7,734.

Ethereum (ETH/USD) Price Analysis,June 5

Ethereum

Ethereum followed the other allies and went downwards on Monday after the weekend’s rally, which was a part of an upside correction to the midterm downtrend. ETH/USD has lost more than two percent in the past 24 hours and is able to develop this negative tendency in the nearest future. If the upside correction is done, ETH/USD will likely to develop its downside progress.

Ethereum

Let’s have a closer look at what is happening on the hourly chart. ETH/USD has reached $626.66 resistance area during the weekend but was unable to cross it. The currency pair has started a short-term downside correction on Monday, which looks like the downtrend in the moment of writing as ETH/USD has broken through the green ascending trend line. Ethereum was stopped at $566.90 support area, which coincides with 2.618 retracement level. What are the possible ways for ETH/USD?

  1. Red scenario (bearish). The currency pair will break through $566.90 and move lower targeting $540.69 support area.
  2. Orange scenario (neutral). ETH/USD will test the closest resistance area at $596.08 and jump off it targeting the      closest support area at $566.90. The currency pair will stay within this range with no significant fluctuations.
  3. Green scenario (bullish). Ethereum will break through the resistance area at $596.08 and move higher targeting the next resistance area at $626.66, which coincides with 1.618 retracement level.

Ripple (XRP/USD) Price Analysis, June 5

ripple

Ripple moved downwards on Monday meaning this upside correction, which was developing during the weekend has come to an end. The currency pair has lost more than one percent in the past 24 hours but bulls still make attempts to reverse the price. XRP/USD failed to leave the Fibonacci retracement during the weekend meaning buyers are still unable to change the situation in their favor.

ripple

Let’s see closer what’s happening on the hourly chart within the Fibonacci tool. Ripple has breached the green ascending trend line and moved lower. XRP/USD is currently above the support area at $0.6515, which coincides with one retracement level. The following ways for Ripple are the following:

  1. Red scenario (bearish). The currency pair will move towards the closest support area at $0.6515 and cross it targeting the next support area at $0.6216.
  2. Orange scenario (neutral). XRP/USD is going to fluctuate within the range, limited by the resistance 0.786 retracement level and the support area at $0.6515.
  3. Green scenario (bullish). Ripple will cross 0.786 retracement level and several other retracement levels targeting $0.7013 resistance area.

EOS (EOS/USD) Price Analysis, June 5

eos

EOS has lost almost nothing in the past 24 hours. The currency pair looks differently as compared to its rivals as it stays above the ascending trend line meaning it still develops its upside tendency. Buyers seem to change the situation in their favor as sellers are unable to push EOS/USD lower.

eos

Let’s see what’s going on with EOS on the hourly chart. The currency pair has jumped off $12.80 support area on Monday and moved higher. EOS/USD has crossed $13.45 resistance area and touched the next one at $14.11  but failed to cross it. EOS fluctuates close to the support area at $13.45 in the moment of writing. What are the possible ways for EOS/USD?

  1. Red scenario (bearish). The currency pair will cross the current support area at $13.45 and move lower, aiming at the ascending trend line and the support area at $12.80.
  2. Orange scenario (neutral). EOS will stay inside the range, limited by the resistance area at $14.11 and the support area at $13.45 without significant changes.
  3. Green scenario (bullish). EOS/USD will breach the resistance area at $14.11 and run higher towards the next resistance area at $14.69.

NEO (NEO/USD) Price Analysis, June 5

neo

Neo has lost more than two percent in the past 24 hours and seems to return to downside tendency as the currency pair has breached the green ascending trend line. The general situation is unclear in the moment of writing.

neo

Let’s see what is going on the hourly chart. NEO/USD has crossed two support areas at $56.00 and $53.20 and is currently fluctuating below $53.20. Neo has tested the resistance area twice on Monday but failed to move higher. The possible scenarios for the currency pair are the following:

  1. Red scenario (bearish). NEO/USD will develop its downside progress and cross the support area at $50.24 targeting the next support area at $48.08.
  2. Orange scenario (neutral). The currency pair will stay inside the current range limited by the resistance area at $53.20 and the support area at $50.24.
  3. Green scenario (bullish). Neo will break through the closest resistance area at $53.20 and run higher towards the next resistance area at $56.00.

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Thomas Hughes

Ripple Price Prediction For November: Quietly In Reversal

Ripple XRP is moving higher and two Ripple price predictions tell the same tale. Read on to find out what you need to know about Ripple XRP future value 2018!
Ripple Price Prediction For November: Quietly In Reversal

While major cryptocurrencies like Bitcoin, Litecoin, and Ethereum wallow at their long-term lows XRP is quietly moving higher. The native token of the Ripple blockchain network advanced 30% in the first week of November and has XRP predictions in readjustment. At last look, the XRP/USD was affecting what could become a major reversal and the beginning of a long and drawn-out rally.

Ripple Predictions Turn Bullish

The XRP/USD made an inconspicuous double bottom over the last summer with lows in August and September resulting in a push higher over October. Now, the double bottom is confirming support at the crucial baseline that has Ripple price forecasts on the rise. The November rally is confirming support at the short-term moving 30-day exponential moving average and the indications are strong the move will continue higher.

image

Both stochastic and MACD are showing strong bullish crossovers that support the Ripple forecast. The first target for resistance is at the 0.5720 level and already tested once. A move up to and above that level would be very bullish for this token and pave the way for a move up to the $1.00 level and eventually a retest of the all-time high.  

Ripple forecast 2018: Adoption is going to drive this token higher

Most Ripple prediction did not come true in 2018, largely because of the overhanging shadow of bearishness within the cryptocurrency market, this is a Ripple forecast you can bank on: adoption of the Ripple network by global financial leaders is going to drive this token higher in the near, short, and long-term.

Most recently, Ripple Labs, the development team for the Ripple network, announced the integration of Ripple Net into OnePay FX. OnePay FX is a cross-border payments mobile application designed by Banco Santander. Banco Santander is one of the EU’s leading banks, valued at over $80 billion, and a sign of Ripple’s value to mainstream financial institutions.

Bank Santander’s reason for choosing Ripple is simple. The bank says that after experimenting with Ripple Net and a few other blockchain based products it saw new levels of transparency, certainty, and speed that is unparalleled in the traditional banking sector. Santander’s Head of Innovation, Ed Metzger, said the bank plans on using the blockchain to improve the lives of its customers.

“We believe that financial services is moving to a world of open platforms where companies collaborate to deliver excellent customer service for their customers, and that’s at the core of what we’re doing with OnePay FX.”

The primary purpose of RippleNet within the OnePay FX ecosystem is to ensure cross-border transactions. The bank wants its international customers to be able to seamlessly send and receive money, a benefit more than necessary for the bank's future growth in today’s global world. As an example, customers will be able to send instant payments directly to merchants and other payment processors with only a few clicks on their mobile devices and without the need for bank cards.

OnePay FX is currently available to Banco Santander clients in the United Kingdom, Spain, Poland, and Brazil but there are plans for rapid expansion. The system is expected to cover the European Union, South American, and Asia in the not-too-distant future.

Ripple Price Prediction 2018: The flippening

A flippening has been in the Ripple XRP price prediction 2018 since before the end of the year and it is on the verge of happening. The flippening, when XRP’s #3 ranked total market cap exceeds that of #2 Ethereum, will be an important catalyst for new investment in XRP as it will indicate a shift of dominance between the two tokens.

  • Bitcoin is the #1 cryptocurrency by market cap at $112 billion and commands 52% of the market.

  • Ethereum is the long-standing #2 cryptocurrency by market cap at just over $22 billion. It commands about 10% of the total market.

  • Ripple is the number #3 cryptocurrency by market cap and may surpass Ethereum at any time. It is currently valued at just under $22 billion and commands about 9.5% of the total market.

Ripple is currently valued around $21 billion, about $1 billion less than Ethereum, and would not need a very big boost in token prices to take over the #2 spot. With more than 42 billion XRP’s in circulation, it would take less than a nickel rise in prices for the flippening to happening, assuming, of course, Ethereum prices remain stable (and there is little reason to expect ETH to make a significant move higher until it overcomes scalability and security issues).

The bottom line is simple; Ethereum suffers from peanut butter syndrome and that will drive the flippening, if not this year then next. The world’s “most advanced” cryptocurrency (ETH) is spread very thin trying to be everything to everyone while Ripple is focused on solving the singular and age-old problem of speeding up and securing financial transactions.

Ripple Prediction 2018: Regulation is the real catalyst

Like most cryptocurrency forecasts, the Ripple Price Predictions, in almost all cases, fail to account for regulation as a catalyst for price movement. RippleNet has gotten a vote of confidence from Banco Santander but the question of regulation still overshadows the entire cryptocurrency market and will likely do so until regulators in the EU and US make their final decisions.

image

In the US, the SEC and CFTC have allowed for only limited access to the multi-billion dollar cryptocurrency market and are under increasing pressure to formalize their stance. While the implementation of a BTC ETF is forefront on the minds of traders, regulation, retail access to trading products, and mass adoption of cryptocurrency will be a boost to all digital tokens including XRP.

The Bakkt platform, a joint venture between the Intercontinental Exchange and its partners, is building up the infrastructure many in the industry say is needed for the SEC to approve retail trading of cryptocurrencies and cryptocurrency-based trading products. Bakkt is expected to go live with its first product in early December, a BTC future, with more slated for launch over the next few months (as they get regulatory approval).

The risk to Ripple predictions 2018

One of the biggest risks to Ripple 2018 is in how the US regulators classify the token. Unlike Bitcoin and Ethereum, which are clearly commodities, Ripple may qualify as a security. This conundrum has been at the heart of the US regulatory saga as no two regulators can agree on how to classify digital currencies. If Ripple is left out of the US regulatory scheme because it too closely resembles a security such as stock or bonds it could see its price plummet.

The good news is that US regulation will likely be two-pronged. On the one side, the CFTC will oversee tokens like BTC, ETH, and LTC as well as products like futures and futures options based on Ripple XRP future value 2018. On the other hand, the SEC will oversee those tokens that more closely resemble securities of publicly traded companies. Regardless, regulation will be a driving factor for this and all digital tokens in 2018.

image

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Vadique Magenta

Between Manipulators and the Forces of Nature: How Bitcoin Market Works

There are no manipulators: cease your struggles and become one with the market forces.
Between Manipulators and the Forces of Nature: How Bitcoin Market Works

When I see hoards of young and inexperienced traders musing about manipulators and puppeteers, I am amused. They believe that some particular entity can control the price of an individual asset or the entire market as a whole.

If so, then God is just an old man in the clouds.

Yes, of course, there are significant levels where redistribution of assets between the participants takes place. Yes, at these levels, smart people take money from not very smart people. Yes, there are news cycles that will affect the overall market’s mood. Yes, there are some cases when the price is heavily influenced by large orders or by means of high-frequency algorithmic robots. All this is true, but...

Part of the market

The political insiders, the managers of large funds and groups of big players who enter conspiracies to enrich themselves- they are all part of the collective consciousness of the market. Like the archer and his arrow, market participants and the price are one with each other, and it is impossible to be entirely sure if the archer guides the arrow, or the arrow guides the archer. What does all this mean?

It means that even very big players, upon entering the market, become subject to a force of nature. Yes, they are piloting formidable battleships rather than fragile dinghies, but even they cannot completely bend the ocean to their will. How many examples does history provide of failures by large banks and funds? Without exception, they were all confident in their powers.

Respect the market

Venture into the market as sailors do the ocean, as miners into the coalpit, as samurai into battle. Do this not as if it was the last time, but the only time, freeing yourself from the memory of past victories and defeats.

Be a blank page. Forget that last month you made enough to buy a sports car, or last year lost half of your assets. All that is completely irrelevant. There is only the price, the market participant, and what happens between them here and now.

Why do I say this?

Because many times have I fallen and risen because I have been on both sides of the barricades. I have been the ruler and the ruled. I have been inside the ring and out. And I have learned that, no matter how powerful your boat is, sailor, the ocean is stronger!

Uncontrollable

When you think that you have everything under control, it’s an illusion. At any moment, something can go wrong and a storm can rise up that will wash away the markings on the sand, the idle onlookers and the coastal inhabitants, as the ocean opens its bottomless gaping womb and swallows all. Respect it, and perhaps you’ll be lucky enough to survive and learn something in this merciless school of life.

I am often approached by attorneys, bankers, lawyers, businessmen with the debris of their deposits after another storm, and all of them confess that the market has been the most serious trial on their professional path. This is true.

His Majesty the Market transforms everyone’s ideas about the very nature of money, allowing you to touch this exhilarating and ever-changing flame that can be warm but can also be scorching.

And what do the big players do? Like metal workers, they hit the molten hot price with a hammer. As in the Large Hadron Collider, they subject the price to bombardment by particle beams. Like in a stress test – they hit the concrete wall along with brainless dummies. Do you understand what I’m getting at?

All this works well while the elements let you put your sails to the wind. But if the storm begins, experienced seafarers prefer not to leave the quiet harbor ...

Distractions

So, by and large, manipulators exist only in your head. And your fantasies about them make it difficult to see the true nature of the market, as something unconscious and immense, something that is alive and always changing, something magnetic and entrancing...

If I were asked what the market is most like, I would probably say that it’s something unique and incomprehensible, similar to Stanislav Lem's "Solaris." Perhaps so...

This intense interest in the actions of major players and constant attempts to unravel their plans grow into a kind of paranoia. All everyone does is talk about the “whales,” check wallet balances and calculate current pricing for special-order news...

I ask you only one thing: free yourself from the thought that someone is running the market! It's impossible. Stop evaluating the situation with the help of your flawed “human” notions. If you follow this advice, you will make substantial progress toward understanding the market as something living and real, not something manipulated and artificial — and then, something ineffable will make itself known to you…

May the force be with you.

Examples from the storm

For particularly curious readers, I made three "photographs" from the very heart of the storm, when Bitcoin corrected by 70 percent and dragged the rest of the market into the abyss. What was that? The self-manifested nature of the market or the actions of manipulators? You decide…

1_18.02

The price at minimum values shows record volumes, after which the market reverses.

2_18.02

Within a day, a critical mass of transactions is carried out in the range of $6,700-$7,800.

3_18.02

At the level of $7,800, a mysterious "iceberg" appears, which does not allow the price to go lower.

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Darryn Pollock

Whales Waking Up: $1bln in BTC moved over 12 Hours — What’s the Plan?

Whales still have a big say in the way Bitcoin moves. So, with a couple major transactions being noted, what is happening behind the scenes?
Whales Waking Up: $1bln in BTC moved over 12 Hours — What’s the Plan?

The very nature of Bitcoin transactions means that all of them can be seen thanks to transparency, but they are also anonymous. Because of this, some major transactions from long dormant accounts have been spotted on Twitter, totaling over $1 billion.

Four of the biggest Bitcoin wallets have shifted this grand amount of money, and over a 12 hour period, leaving many wondering what could be going on. Most of these wallets have been inactive for years as well, which adds more mystery to the moves.

With such big moves happening, and such a low point in Bitcoin’s market, there could be real fear of capitulation and a potentially massive dump coming, but the actions of these transactions probably point to something else.

There appears to be some housekeeping going on by a big Hodlr, as the funds were divided up into 100 wallets in one instance. Another thought is that the move was to take advantage of the low fees to move the Bitcoin into Segwit wallets, as they were in legacy wallets before.

Four big moves

The first money move came from the highly monitored 9th biggest Bitcoin wallet. It has been dormant for four years and sprung to life as 66,000+ BTC (worth over $260 mln) was moved to another location.

Following that, the 10th biggest wallet by Bitcoin volume moved a similar amount, and then the 11th biggest wallet emulated the move. These actions continued with another wallet worth approximately half of the first two (ranked at #30), also on the move, moving 32,957 BTC, followed finally by another newer wallet previously ranked #36 moving another 31,269 BTC.

This total movement over the 12 hours saw 263,294 bitcoins shift at a value of just over $1 bln

What’s the plan?

These movements of course could cause some concern, but the following actions taken by the Whale seems to suggest it is more a case of housekeeping and preparation.

After the second move of the cache of Bitcoins, it was discovered that the coins had immediately been subdivided into smaller equally valued caches in sub-wallets after being transferred. Thus, the initial transfer was split into 99 wallets each containing 662.52BTC with the 100th containing a rounded 200BTC.

Following that, the other two large moves also followed a similar pattern as the Bitcoin were divvied out into smaller chunks across multiple wallets. It thus seemed indicative that the coins were being brought out of cold storage and being prepared to be traded, should the desire rise.

Of course, the move also took the Bitcoin from legacy wallets to Segwit, and as such, was an easy and cheap time to make the transfers as the transaction cost for Bitcoin is extremely low at the moment.

Sit and wait

It remains to be seen if these coins will be returned to cold storage, or even go dormant again if the Whale was to decide to continue holding on to his fortune, or if this preparation of the coins is a readying to dump a lot of BTC back into the market.

If they were to be dumped, it would have a huge effect on the price of Bitcoin and the entire cryptocurrency market, as the flooding would cause a huge spike in supply and probably negatively affect the price of the digital currency further.

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