What we saw earlier was the bitfinex algorythm in case of margin call cascade. This is the explanatation of how it work (not official one, just guess).
There is a limit for the margin call cascade of about 10% drop in 1 minute. Then the algo stop market selling the bitcoin, and let the buy order to fill the gap. Then it sell again to the previous limit and repeat the processus until it sold every bitcoin from the margin calls.
I m open to any suggestion or comments
Edit : the begin of the action was due to a single 5k sell order to 575.
Comments
KyleFromOhio
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Bullish sign?? ... since $5 million in longs got wiped out?
LeMogwai
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Downtrend is really strong, i don't see any reason for it goes up from here. Even if it was due to a big sell off 500 has been broken down, soon people will realise that and the sell off will resume.
OmgImTrader
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to da core!
capoeira
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core is what? $100?
OmgImTrader
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$100 is just ground :P
capoeira
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hahah, that's our permabear
KyleFromOhio
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True.. I keep forgetting this all happened between 1-4AM (in the States).
LastBattle
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Its morning in China, so yeah... big dump at this time
LastBattle
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Haha great insights! The next time there are such a dump I'll move a bit of fiat to bfx
NatePerez
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I am so confused by this and very green to understanding charts similar to above. Instead of asking for an explanation of what this means for the future of bitcoin or how you got to you conclusions, I was wondering if anyone could point me to a tutorial/explanation somewhere on the interwebs.