After the Coinbase-induced Bitcoin Flash Crash, Buy The Dip Opportunity or Bull Trap?
Is this a buy the dips opportunity? Last night bitcoin Dropped $1,700 in the distance of around 15 minutes when major US crypto trade Coinbase moved down.
The price recovered quickly in its US session low at $11,900 to Commerce back in the top end of the $12,000s, but has fallen back since then, currently trading at $11,479 on Coinbase.
Points out, the website is simple to use so stays popular with new entrants, but has really high transaction fees. Even though you can’t buy bitcoin using PayPal on Coinbase, you are able to withdraw funds for this a PayPal account for free.
The busiest fiat-to-crypto market in the country with largest Crypto market in the world heading off line — it’s back up now — brings back memories of the infrastructure problems that plagued cryptocurrency exchanges in the red hot market states of late 2017.
And Coinbase was not the sole exchange having trouble. Robinhood went down.
It might seem that the cutbacks to capability created by lots of exchanges During the downturn in prices, which saw daily trading volumes plummet, may have jeopardized a number of their network resilience set up in the previous market .
Market participants will be Searching for support at around $10,500 Level, with a fall below that amount preparing a retrace to $7,976 (volume profile stage of control).
That seems unlikely though, with buyers likely to reappear if the price falls below $11,000 today.
Those who see bullish resurgence still intact will probably be looking to enter in an attempt to retake $12,000.
BitMEX’s enormous bitcoin volumes
Volumes on the favorite BitMEX Exchange, where leveraged trading is offered, stood at $250 million in lunchtime on the US West coast when Coinbase’s problems began.
Shortly after the price began dropping one of its most crowded Bitcoin transactions — that the bitcoin/US dollar perpetual swap contract — attracted $690 million in business.
BitMEX has been seeing huge trading volume gains for bitcoin trading, with customers attracted with its margin trading, where trades can be put with borrowed cash.
The BitMEX exchange works from Hong Kong and is the largest Margin and futures trading place, where sophisticated investors are also able to short markets — i.e. earn money when prices fall. Daily volumes were near $12 billion yesterday and has now reached $14.3 billion.
Courtesy Skew (www.sk3w.co)
With”open interest” in bitcoin futures contracts at records in both The unregulated BitMEX exchange and the controlled CME bitcoin futures market in Chicago, it’s further evidence that institutional interest is now growing.
Entering leveraged bitcoin commerce at yesterday’s top was painful for some
So too is some retail interest it would appear, as the stratospheric Price profits — bitcoin is up 33 percent in the past seven days — attracts speculative money.
Those tempted to enter around session highs at $13,900 yesterday could have had their fingers badly burnt.
According to users on one London WhatsApp set for crypto industry
“My ex just lost everything by longing”, associated one group participant. She purchased bitcoin at $13,700 with her life-savings using leverage available on the Kraken market.
We hear a great deal about short drives when costs rise but the reverse May have led to the rate of the Coinbase-inspired drop yesterday, as”long” positions were taken out, forcing market orders at previously set”stop-loss” positions. Kraken leverage maxes out at 5x.
Even though more institutional cash flow will mature the Current Market, which Should help to make it less explosive, and the current news flow has set a floor under prices, extreme volatility remains a stubborn characteristic of crypto markets.
That is good for dealers that can go short or long, but not for ordinary folk trying to time when to buy bitcoin.