Some whale on Bitfinex just tried to break the price lower with a big margin short, and failed!
This is probably the most clear example of what manipulation looks like on BTC. As the price got near the trend-line support that has been building over the weekend, a trader on Bitfinex with deep pockets started shorting aggressively to try and tank the price under $6300. About 2000 BTC in shorts were opened in about 10 minutes:
Here is the support trend-line on the 1-hour chart:
I'm almost certain the intent here was to cause a flash-crash, but the attempt failed as you can see. This could very well be the same entity that opened a shit-load of shorts last week near the bottom @ $6000.
There is someone out there with very large short position, that is down a lot of $$$ since price bottomed out last week.
Is the market primed for another short-squeeze?
Been watching this develop for a while. He is screwed unless he gets some help.
Ouch, no sympathy from me however!
I've always struggled to understand how people make money on shorting a stock/coin. Would the whale make money because he's taken out a futures option and/or bet that the price would be say, $5800 on a certain date?
Does the price go down just because they dump a ton of supply on the market?
Has this whale now sold 2000BTC for really cheaply? Do they now have to buy it back at a higher price in order to try again?
Usually a big trader will enter the position, and then dump a bunch of coins on the market to get the momentum going in his desired direction.
Depends on how much margin they have: the bigger the margin, the bigger losses they can sustain before the exchange forces the position to close.
Thanks heaps for that!
no vol... so bearish short and mid term
Likely trader is Bitfinex themselves. Another chance to shuffle in some more fiat Tether. Hopefully regulations will include prison time for this nest of pedophiles.
It very could be Bitfinex trading against its own clients and running stops.
Seems Team Bitfinex Tether are at it again.
...unless it's the banks..Then they can just keep printing money to cover their losses..
...and its the central banking system that want's to see BTC tank, no one else..(I think so, anyway)
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