Bitcoin Price Manipulation Done With Surgical Precision
Twitter is filled with Bitmex bashing at the moment.
A few days ago, Bitmex had announced that they will be going under maintenance for 30 minutes. Coincidentally at the same time, groups started buying up large quantities at 6300 range on Bitfinex. This was very suspicious and most analysts knew something is up. We all knew that Bitcoin Shorts vs Longs ratio was way too over-extended.
A day later the accumulation zone changed to 6200 at Bitfinex. Price on other exchanges had tanked by 150-200$ more than Bitfinex but the hidden walls just could not be broken. Eventually the breakdown failed as selling pressure seized.
Few hours ago, the price was systematically pushed up (Markup phase) through the parallel channel and through heavy resistance zones. This caused retail traders to FOMO in and go long. There's also the element that tomorrow there are two Bitcoin ETF hearings and retail might be bullish on that. They failed to see that something sinister was in play here. Retail simply filled up limit shorts orders of the very same groups that pushed the price up.
Effect on Bitmex traders: As soon as Bitmex went down for maintenance, the price were pushed up. This made it impossible for traders to go end their positions before their stops get taken out or they get liquidated. Finally, after an hour when traders were able to log in, they could only see blood on the streets. Most accounts have been liquidated. Most stop orders executed beyond point of liquidation so balances are in negative. Prices pumped up 20% more than other exchanges for a split second. But nevertheless the damage was done. I stand very suspicious of the order-book. How is it that the order-book suddenly had such little resistance that prices could be pushed up that much? Were all orders on the order-book cancelled as in the case of Binance when it goes under downtime? I don't know. I only speculate that something is fishy with that exchange.
How does this affect the Bitcoin ETF Hearings?
Well, I'm glad you asked. SEC's biggest concern over approving a Bitcoin ETF is manipulation though legal teams did a good job of compiling legal jargon to create an illusion that they can protect themselves from manipulation, today proves otherwise. I say good job at compiling legal jargon cause I'm a lawyer and I went through their arguments. "Securities Law 101". Anyways after today's spike and forced liquidations, one must be delusional to think that tomorrow or day after anything related to Bitcoin is getting approved. Also, not to mention, retail fails to understand how regulatory bodies and bureaucracy works. They don't like to limit themselves to time bound decisions.
What now?
Once, the Bitcoin ETF's get rejected or delayed the market will realise their mistake and it's gonna tank once again. This market is like playing a chess game with a mediocre AI bot that predicts 10 moves ahead. I'm not cynical. I'm simply being rational.
The ones who disagree with my thought process, kindly read up on Keynesian beauty contest theory.
On a final note, I would like to commend the groups behind today's manipulation. It was done with such surgical precision that I am truly left in AWE.
Godspeed
_________________________________________________________________________________________________________________________
I'm not your Financial Advisor and this is not to be construed as Financial Advice but I can be your Legal Advisor if you can afford me.
A few days ago, Bitmex had announced that they will be going under maintenance for 30 minutes. Coincidentally at the same time, groups started buying up large quantities at 6300 range on Bitfinex. This was very suspicious and most analysts knew something is up. We all knew that Bitcoin Shorts vs Longs ratio was way too over-extended.
A day later the accumulation zone changed to 6200 at Bitfinex. Price on other exchanges had tanked by 150-200$ more than Bitfinex but the hidden walls just could not be broken. Eventually the breakdown failed as selling pressure seized.
Few hours ago, the price was systematically pushed up (Markup phase) through the parallel channel and through heavy resistance zones. This caused retail traders to FOMO in and go long. There's also the element that tomorrow there are two Bitcoin ETF hearings and retail might be bullish on that. They failed to see that something sinister was in play here. Retail simply filled up limit shorts orders of the very same groups that pushed the price up.
Effect on Bitmex traders: As soon as Bitmex went down for maintenance, the price were pushed up. This made it impossible for traders to go end their positions before their stops get taken out or they get liquidated. Finally, after an hour when traders were able to log in, they could only see blood on the streets. Most accounts have been liquidated. Most stop orders executed beyond point of liquidation so balances are in negative. Prices pumped up 20% more than other exchanges for a split second. But nevertheless the damage was done. I stand very suspicious of the order-book. How is it that the order-book suddenly had such little resistance that prices could be pushed up that much? Were all orders on the order-book cancelled as in the case of Binance when it goes under downtime? I don't know. I only speculate that something is fishy with that exchange.
How does this affect the Bitcoin ETF Hearings?
Well, I'm glad you asked. SEC's biggest concern over approving a Bitcoin ETF is manipulation though legal teams did a good job of compiling legal jargon to create an illusion that they can protect themselves from manipulation, today proves otherwise. I say good job at compiling legal jargon cause I'm a lawyer and I went through their arguments. "Securities Law 101". Anyways after today's spike and forced liquidations, one must be delusional to think that tomorrow or day after anything related to Bitcoin is getting approved. Also, not to mention, retail fails to understand how regulatory bodies and bureaucracy works. They don't like to limit themselves to time bound decisions.
What now?
Once, the Bitcoin ETF's get rejected or delayed the market will realise their mistake and it's gonna tank once again. This market is like playing a chess game with a mediocre AI bot that predicts 10 moves ahead. I'm not cynical. I'm simply being rational.
The ones who disagree with my thought process, kindly read up on Keynesian beauty contest theory.
On a final note, I would like to commend the groups behind today's manipulation. It was done with such surgical precision that I am truly left in AWE.
Godspeed
_________________________________________________________________________________________________________________________
I'm not your Financial Advisor and this is not to be construed as Financial Advice but I can be your Legal Advisor if you can afford me.
This level of manipulation is the reason why we will never get a Bitcoin ETF.
The biggest exchange that controls the price of Bitcoin is pulling out crap like this then there's no hope for an ETF.
Funny thing is Bitmex is a futures market. A futures contract follows the price of the underlying asset but here the Futures contract is determining the price of the asset.
I'm in complete disbelief. I shall be exiting Bitmex before it pulls an exit scam on us.