Bitcoin Price ‘Flash Crashes’ To $6.1K – Here’s The Likely Reason Why
Crypto Guide
Live News

Keeping up with all the cryptocurrency news and updates is not an easy task, but we are up to the challenge! This way we can help our readers to keep track of changes in these fast growing currencies. Just like our site, is willing to face this challenge and on their site, they compile the features, key elements, and recent news involving bitcoin casino sites and which are the best to try!

Bitcoin Price ‘Flash Crashes’ To $6.1K – Here’s The Likely Reason Why

May 17, 2019      Cryptoknowmics

A 5,000 BTC dump on Bitstamp likely caused the bitcoin price flash crash that occurred during the early hours (UTC) of Friday (May 17, 2019). Bitcoin plunged to as low as $6,100 on the exchange but has since recovered over $7,000 over the past few hours.

Whale Dump, ‘Fat Finger Error,’ or Bot Glitch

A trader on the Bitstamp exchange reportedly put up a sell order of 5,000 BTC at an oddly low price of $6,200. This move caused a massive price plunge on the exchange, setting up a temporary arbitrage opportunity.

The effect soon spread across the market to other exchanges with the BTC market average falling to about $7,100. As at press time, Bitcoin had rallied to $7,300 on most of the popular BTC exchange platforms.

Bitcoin flash crash on Bitstamp

Details are still hazy at this point but there are three likely theories for what happened – a whale dump, fat finger error, or a bot glitch. However, given the lack of significant volume variance at the time of the crash, it seems unlikely that the crash was as a result of a deliberate dump.

READ  Financial Analyst: Current Correction is Healthy if Bitcoin (BTC) Support Found Above $10k

On the flip side, looking at the chart from Bitstamp, the dump occurred over a 10 to 12-minute period with the orders being continuously executing at consecutively lower levels than the market price.

Such a pattern reeks of manipulation but the tradeoff seems counterproductive unless they held high leverage short bets on another exchange, say BitMEX. Theoretically, the dump would cause massive liquidation of long positions thus ensuring profits for the trader.

Again, these are still speculative explanations, but Bitcoinist will continue to monitor the situation and provide updates as they emerge.

READ  Venture Capitalist: Improved Fundamentals Will Help Bitcoin Rocket Towards Its All-Time-Highs in 2019

Bitcoin Price Parabolic Advance Halted

Friday’s flash crash halted BTC/USD parabolic advance and confirmed predictions of a possible retrace. Bitcoin is currently down more than ten percent.

The crash also occurred at the tail end of what looked to be price fatigue for BTC with the parabolic advance losing a bit of momentum. With fundamentals largely unchanged, this slight blip might not be enough to stop the bull market completely.

On Thursday (May 16, 2019), Bitcoinist did anticipate that Bitcoin could be due a retracement, perhaps down to the mid-$6,000 level.

Elsewhere in the market, altcoins have also suffered significant 24-hour trading day losses after an impressive rally over the week. XRP is down about 15 percent with only a handful of the top-100 cryptos showing any positive price changes at the end of the week.

READ  Bitcoin (BTC) Price Rallies 10%: Bulls Remain In Driver’s Seat


Go to Source
Author: Osato Avan-Nomayo

#Bitcoin Price Prediction #Crypto News #Cryptocurrency #Cryptocurrency News

The dynamics of Crypto Fraternity is changing at a lightning speed. Access to most critical information in a timely and curated manner is extremely critical for the health of your investments. Cryptoknowmics is the fastest platform to bring and deliver news and critical information from above 3000 sources at your fingertips. We cover almost all aspects of cryptoworld from exchange, tokens, coins, dapps, ICOs, IEOs, STOs, events, airdrops, jobs, services, wallets, etc. We strive to be the complete solution for your crypto needs.