Bitcoin [BTC] price just witnessed huge volatility in its price with a flash rise and crash. There were a lot of interesting points that came about during the move.
First, the rise was executed exactly at the break of a new day at 00: 00 hours UTC on 12th December 2019. While the buying volume was tremendous the following red candles were opened in smaller numbers.
Moreover, the price action also logged a difference between the prices of exchange from this particular one: BitMEX.
BTC price rose from $7196 to reach a high at $7445 in less than a minute followed by a slump to $7093 in the next 40 minutes. However, this particular price action was observed only on BitMEX, whereas, it was slightly different on other exchanges.
BitMEX Whales Cause Imbalance in Crypto Markets
The high recorded on BitMEX is $7445 compared to the $7309 on Kraken derivatives market. This reflects a difference of 1.8%.
The high recorded on spot exchanges like Bitstamp and Coinbase at the moment was $7298. Bitcoin Basis (the difference between derivatives and spot exchanges) rose to about $150.
The rise was momentary and the large buy could have been the result of whale action. Some of the traders even criticized BitMEX for their operations. Nebraska Gooner, a crypto trader tweeted,
Why anyone trades on Bitmex is mind-blowing to me. They’re known for having the absolute worst scam wicks.. smh
Nevertheless, the vast volume and 100x leverage on BitMEX makes it susceptible to these moves.
The flash rise towards $7400 caused about $8 million short order liquidations at the exchange. Moreover, at the reversal about $6 million long orders were liquidated. Hence, weak hands seem to be getting liquidated with sharp moves in Bitcoin.
The uncertainty in price action is holding the price above $7000. However, the bears and bulls on both sides of the current range seem to be in large numbers.
Where do you think the break-out of the accumulation will occur? Please share your views with us.
The post Bitcoin [BTC] Price Logs a $600 Flash ‘Pump and Dump’ at 00: 00 Hours appeared first on Coingape.