Merely another accumulation phase

2 abr 2018

Again, not going to launch from here unless a whale so desires. If it were going to be done it would have happened by now because we would be seeing much more volume and a lot more more upwards price movement. This is the bounce caused by the "buy at market" orders that were sitting around the 6400 level. Curiously though, I was watching bfxdata at this crucial time and it was actually a series of smaller and more gradual one minute green candles prior to the massive buy. This makes me think that there weren't huge numbers of orders that *everybody else* had in place, but rather an opportunity for the whale (or bitfinex) to clear out short stops/trailing stops. This same behaviour occurred on the dip of 6 February where buy orders came in at 6051.00 and drove the price up to 6700 ON THE DOT. I remember this clearly because I happened to have a stop order at 6700 and was disappointed that this was the number they chose specifically to clear out stop orders.

I believe now is an appropriate time to share my next BFXData observation:

Hidden Orders
On occasion, you will see vast amounts of bitcoin being sold or bought into hidden orders. These hidden walls are often millions of dollars worth of bitcoin. Trade amounts of 20, 50, 100 btc at a time will flash past during these trade frenzies. These trades cannot be conducted completely hidden for two reasons: 1) they are not conducted as limit orders, 2) if they were completely hidden then there would be virtually no price action for many minutes at a time which would cause human discomfort - ie is Bitfinex getting a DDOS again? Is tradingview working? What's with the candle/volume movement?

This is likely one team of bots reallocating bitcoin/funds to the other team of bots. This is particularly noticeable at major support/resistance lines. Once the bots have accumulated as much as they can leading up to that line, they move the bitcoin from accounts that have accumulated to the accounts that hold or sell (and vice versa). In order to buy bitcoin, an account needs USDT, so by selling the bitcoin to itself, the bot is essentially moving bitcoin out and money in to whatever account is responsible for buying. These hidden orders often have the opposite effect of a visible wall. The bot is obviously selling to itself for a reason. Sure, it may want to put the price down or up a little bit, but it has to take into account what its acceptable profit/loss percentage is. So when you see 2M worth of bitcoin get sold over about 15 minutes, it is likely because the bot intends to start buying in large quantities (and of course vice versa). An example of this hidden selling can be seen at the bullish breakout of the 30 minute candles at 7k support/resistance on 31 March 2018. Go to the one minute time frame and look at the virtually flat candles and their volumes. Some will be greater in volume than others, but these candles took many small btc sell orders into a hidden wall.