Bitcoin prices edge closer and closer to suport levels of $200 once again amid fears of Chinese manipulation attempts on a already turbulent market.
Bitcoin prices have been moving from over $300 to under $220 in a matter of days highlighting just how wild Bitcoin is. Currently in a near unpredictable state many analysts are considering whether a trend reversal is possible but as far as predictions go they remain just that, predictions. Bitcoin prices currently have enough power to move up but individuals posses enough Bitcoin to move prices in the other direction. With current indicators looking positive Bitcoin has been given a Buy label with prices anticipated to recover within a weeks period. Currently the Bitcoin price is meeting a lot of resistance both at the $200 price point which is helping to keep prices stable but also at the $230 creating a bullish and bearish effect on the market at once.
However many have pointed out the current price crash may have been have been due to Chinese manipulation and Bitfinex’s influence over Bitcoin prices. It has also been explored that the owner of the exchange may have also plated a crucial role in manipulating prices. It is believed that he also admitted to using insider information to trade on his own exchange.
Yesterday he was asked if he trades on his own platform Bitfinex, to which he replied yes. He was then grilled “don’t you think that is a conflict of interests because you have special access to the platform?” – that is, he can see things normal traders cannot, like hidden orders, the size of everyone’s accounts, the open margin positions of accounts, exact trading activity of each user, how much USD is flowing into and out of the exchange (he would have the competitive advantage of knowing when big players are feeling bullish). All of this gives a huge competitive advantage.
After this questions, he tried to back-pedal but made it worse by trying to justify it by saying because he is an early adopter (meaning he has a lot of coins and qualifies as a whale) he “only trades a little bit here and there”.
The full post made by reddit User can be read here
It was also seen that there were random periods when the exchange reported 0 trading activity. This would have instantly raised eyebrows as many estimate the owner of the exchange may have liquidated sums of bitcoin more thank 250k. This dumping may have been one of the more clear cut reasons behind the current market turbulence.
Well its the Bitcoin market so what can one say. Many speculate that the Chinese are behind the massive dumping that has occurred over the week. With volumes at extremely high levels, $23,371,600, a move up is possible but the market cap must expand further if highs of $300 are to be seen. However the possibility of a jump to $240 – $250 is still possible whilst a dangerous drop of below $200 is a real possibility at this stage with highs experienced this week outweighed by the drops seen. A drop of over $16 was experienced in a matter of minutes highlighting the volatility of the Bitcoin market currently in a downward trend. However it is never too late for a trend reversal and with the prices dipping further and further it is anticipated a rebound will begin quickly pushing prices to highs not seen for months.
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