Bitcoin Forum

November 29, 2017: bitcoin falls from around $11,400 to around $8,600 in about four hours. That's a flash crash if I've ever seen one. 24.5% decline, then a sharp movement back up to about $10,000 45 minutes later. The volatility is extreme, even by crypto standards. In the midst of that, I was seeing a bid ask spread over $200 where I am accustomed to it being under $1 much of the time.

https://i.imgur.com/JEtWPPc.png


Any theories on the cause?

Im not sure if that is really what we would call a "flash crash". Surely just a small fat finger trade or some other jiggery pokery? Follow your own research, head and heart especially in cryptoland

No theory at all, whales are just taking their money now. After a quick dumped, look at the charts again now as the price of bitcoin is now starting to be fueled and pumping again. And as you will notice, majority of the crypto's are on down so these whales are seriously simply taking their profits.

It was certainly a rapid downfall but after all of it bitcoin is back about where it was. I think people are just taking profits and taking advantage of uncertainty in the market to swing trade.

FLASH is the proper description for it but no panic Bitcoin is back on track.
I think we are going to see this far more regularly. Someone posted in a
different thread that as the price gets higher the volatility will increase......
or something of that nature.

isn't it just the opposite? The larger the marketcap the lower the volatility? because you need more and more money to even influence said coin.

I think generally this is true, but it should be cause for alarm that as large as btc's marketcap is, it can still crash 25% in a matter of hours. It's a lot harder to cause massive price spikes the larger it gets, but I think it is always easier to have volatility in a downward trajectory.

I see that unconfirmed transactions has spiked to around 100k, so I wonder if that has anything to do with the flash crash. It seems the network is under spam attack again, with wildly higher transactions than is typical.

I find the system very funny. Whales pull out and they drop the price which is what they want right? They want to be at the forefront of sales, so when they do sell, they get the most and the price for BTC drops. Which means that this opens up a whole new opportunity for them to purchase again because the price is low again. They want to max their profits out so they buy low sell high, but in the process, they create the next cycle as well.

But that is only true if you are holding dollars, whales are holding bitcoins so it does not matter if the price of bitcoin is very high in terms of dollars they are still holding bitcoin which means that they still have enormous power to influence the price no matter how big is the market cap, they know this and this is why they refuse to sell and to not buy again since they will lose their power.

Old whales will retain their marketpower, I agree. But for new whales it will be very hard to accumulate this kind of power on the market. like the old whales have.
I think it will be an interesting journey and hope that BTC first recovers from that Nightmare-4h-candle and then a slow bleeding starts, so Alts have a chance.
But tbh I doubt that the rallye is over yet.

maybe big investors sold their bitcoins but don't worry investors will invest again after that dump it will back to $11,000 the price of bitcoin soon.

Indeed, and some people are just selling on panic. But still I believe that this is just the correction and bitcoin starting to pump now. Just Hold because this is not the end, this is just a start of a bright future.

Wow, I didnt realized it dropped this low. What I read in another thread was, that one guy sold all his BTC for $10 each by mistake and this shall have caused the "dip" if we want to call it like that. Not sure if this is true though.

A group may have decided to withdraw for now. But it is okay.
Now we knew bitcoin could go that way and could also reach heights like that.
We have hope now that another day will come and it will hit back to that price.

That is still good news. This fight aint over. Still hodl.

A flash pump and tht means about flash crash too. The market can be manipulated by the whale. if you are seeing about the fact that the whale can make the market becomes panic.
Just dump a lot of your bitcoin and the market will give a panic reaction. Some expert already predicted about the flash crash.
Bitcoin hasn't a good support line.

This Coindesk article doesn't provide many clues except possible overloaded exchanges and congestion: https://www.coindesk.com/bitcoin-price-falls-1000-minutes-erase-24-hour-gains/

There still doesn't appear to be a downtrend yet despite this

I'm curious to see where it goes this week!

Its maybe the whales who holds a lot of bitcoin, getting their profit from the great pump that happened. Causing the value to dip. Btc user qho holds large bitcoin can really affect and dictate the price in just one move. Well, that's the price they gey for being the pioneer snd thrle ones who believe and bet in the industry.

I mean the price is still skyrocketing without no breaks since a month now. This is really stunning.

The price mark for this year has been reached, yet bitcoin is crossing bounds. I do believe that next year is going to be an explosion in price because awareness is going to be higher and many more investors coming in plus new manipulations.

I have the same theory with you, maybe this investors has a limit of about $11,000/btc to sell their bitcoins and earn profits after the big dump those people who are waiting for the bitcoin to have lower price buy huge volume of btc so that the price goes normal again. This could only happen in two ways, one if the number of holding bitcoin that has the same goal or target of $11,000/btc is huge in enough to dump it to $8,400 and two if there is a billionaire invested in btc and bought it in large volume sold his btc.

The simple cause for this is speculation and comments made by some bankers yesterday! Some of us has make some speculations here that bitcoin is going to clash, bitcoin is going to drop below  $8,000 and we still expect people not to sell out of panic. Yesterday one top banker make some attacking comments on bitcoin and said it is going to clash on BBC and there is no way this comment will not affect people decisions on bitcoin.

Seems to me like just another day in Bitcoin. Some people live by the rule sell high and buy low, and that's probably what happened. They saw 11k, took the opportunity to sell, then bought in again. We're just a bit below 10k which is quite normal.

Other than that, market correction maybe? It doesn't really matter though, we've already recovered after all.

I wouldn't call it a flash crash, it was more like a dump cycle. Hopefully, as more players enter the bitcoin market and the distribution of bitcoin gets healthier, the price will be less susceptible to pump and dump cycles like this.

Yes, welcome to Crypto :)
Wouldnt call that irregular as well.

In time, BTC will adjust to the new price range around 10k and it will get a bit more stable (a BIT) ^^

Just like I do maintain my stand that there are some sets of persons that controls the market movements. It is quite imperative to note that Bitcoin's volatility rate is an exceptional that hasn't taken a cue from any other kind of currency. As much studies are being made to understand its market behaviour, the flash crash caught a lot off guard and really sent a panic across the board for crptotraders. Well, the bitcoin is back up in the game with its upwards trend again. Maybe a regulatory body will step in to control its volatility to some extent.

the flash crash is another correction for the price even if it is just happening in a second but it makes people get panic. we can see again in the future and we need to be prepared and the best thing here is we can buy at a lower price because, after the flash crash, the price is back to increase again. many people want to sell their bitcoin when the price is in high price so they can prepare to buy bitcoin again.

I think that it was a smart movement of the sharks to get rid of weak hands.
We need to get rid of weak hands before we can move into the area of 12-13 K$.

Price fixes are healthy, and it's okay that the price of bitcoin seldom goes down after huge up trend.

I think that the trend is still up, as the news sites hype is still alive.

Why would you call this a flash crash. It was a flash for sure but not a crash per se. It was overbought. Another regular day for bitcoin.

some small investors began to extract from their hands. They are panicking. this is what is already wanted to be done. balinar wants to do this.

Wow amazing, for just a short period of time it falls down then back to its stabilized value. Bitcoin's value is really unpredictable and we can't the stop its value which grows rapidly. I would say that for just short period of time, flash cash was due to some traders and investors sold a huge amount of bitcoin and after that some of them grabbing opportunity to buy again beacuse of a small amount of bitcoin. Speculation also gives impact to its downfall for giving wrong informations. If it might be happend again hopefully still back to its stabilized value, giving more chances to bitcoiner's to have profit.

Yeah, this is exactly how people want to play with bitcoin for the avarice of higher profits. However if everybody continue holding, bitcoin might have crossed $13000.
For now, the price is not recovering, it just lowered to $9000 and going down at bottom in 24 hours i think. But no worries, bitcoin is great in returning to its normal state.
We can expect surge again possibly only after a large decrease as whales will not pump until they see the right time

Bitcoin is almost invulnerable to attack by hackers because of decentralization. But economically it can be tried to undermine, due to dumping

yesterday was the most valotile day for bitcoin. Yes i agree this was a flash crash but its more then a flash crash. Its just giving some signals to investors but who knows whats the signal?

If you look at the past big "crashed" which are the China-crash in september and the recent BCH attack then one thing is amazing:

Bitcoin seems to come out of any crash with a subsequent explosion in rise. I call it the "phoenix effect"

So please, if BTC wants to crash to 500$ today - please go ahead.

The answer will be 30k $ tomorrow.

I thought that downfall is just an another price corrections attempt in which a conspiracy to dump the bitcoin value once again but now it seems back to normal because maybe there attempt to panic the people again is just another failure. Anyway, if this is a price corrections or not the most important thing in time like this is to keep on holding and hoarding to ensure bitcoin price is always stable.

if we know now bitcoin will be in its place after falling so quickly drastically I think it's not a flash accidents but a chance for buyers to trade. but unfortunately not many people are aware of what should be done at that time so that the opportunity to get to a big profit just pass without us utilize baik.begitu lah if it is in the world of crypto currency everything is nothing is certain.

When a trader have enough bitcoins with them then bitcoin Market manipulation is a common thing in the market. We all know that there are pumps and dumps created just to have profit when market is not moving that fast. Sometimes a single company like JP recently caused the market crash from 49k to the 33k dollars by using strong words against bitcoin (classic FUD) and when market was crashed to the 33k or less they swoop in and made big splash.
So it is okay to observed this kind of behavior. People with experience will simply keep their calm and either hodl or purchase more.

That's not the first time Bitcoin crashed that high. Recently on 12th November and 17th July, Bitcoin had similar crash! Basic reason for this is that crypto market is still not mature completely. 90% of the investors entering in market now are aiming for quick profits. That's why with small fall, we will see adjacent big fall due to panic selling and similarly with small rise, we will see adjacent big rise due to possible opportunity.
But still nothing to fear as HODLER because market demand is constantly rising at the moment and price is successfully backed by it. 

Thankfully I was asleep during the time! My BTC is safe and sound and enjoying the near $10,000/USD level. Seems that's where things are now... Not much resistance from traders at that level. 

Everything in cryptocurrency depend on supply and demand ! That's why bitcoin consider as risky investation and as far as bitcoin exist, it's fit for long term investation rather than short term.
So for who want to invest , you can purchase now and hold as long as possible !

Thing is, that something like this, flashcrashes, dips, corrections, all happen sometimes. You have to control your emotions and learn to keep calm and just sit it out. Its crypto, still a highly volatile market.

The drop was certainly big enough to catch everyone's attention, and the reason behind that can never be known as there are a lot of things that can cause such a thing. Like panic sell, FUDs, negative talks and many more. Now any of these things can cause a price drop if it occurs anytime in the community. But to be honest, they all happened in the past as well, but this time the drop was really big. It frightened the hell out of me when i saw a post about it in twitter  ;D It is really hard to see the price going down in such a short time.

No rocket science, Amateur investors who are here just to earn quick profits exited the market taking their profit. Still i feel the crash is not that much, I believed that BTC could touch $7500.
But it is amazing to see the quick recovery of BTC within 4 hour, I personally never expected that. I felt that situation of panic selling occur and now it will take time to get BTC stable and recover back. But this quick recovery not only in BTC but also in other alts shows the investors developed a rigid confidence and faith on crypto market.

Because we are very close to the top..  Accept this fate bitcoin will crash very hard but no one knows what rate is that. After the big crash. Our journey to 6digit btc rate will follow.

Well as an update bitcoin's price now is rotating around $11,000 - $11,700 and this is something great. As I said it is fueled now and going to pump again and that is what's happening now. People who are talking about crash must be prepared all the time for their weak hearts but for long time traders, it's a good time to buy.

Currently, bitcoins price recovery is very fast. Within a few days the price returned to before declining. The bitcoins community has been strong enough to support Bitcoins forging ahead. So the crash will not happen as long as the community is still strong to pump Bitcoins back recovery.

Seeing the impressive rise in the price of bitcoin, anyone would have expected this great correction a little earlier, when breaking the $10,000 mark. Since then the bitcoin was oversold, so once the price continued to rise the pressure increased so much that a violent correction was to be expected. The fall under the $9,000 line was expected when the price reached $10,000, but as the correction was delayed, it had to occur in such a violent way.

The price crashed very fast and then pumped very fast as well, to me this is a sign that someone dumped a lot of coins and that it is very likely that person or persons bought again at the discounted prices, that is the only way to explain the chart since it is unlikely that the recovery would be so fast without another individual of similar power waiting for that to happen, so it was a maneuver that was planned in order to extract profits from the market.

Not really everyone, that will be depending on what rate your Bitcoin was purchased. Falling back to $8k+ or 9 is not much a problem, every reduction is like an opportunity for people to buy-in quickly, and I believe there are people who did that during the flash fall. As of recently, price is back up to $10,533, and might be back to $11000 by tomorrow.

BTC stabilized quite nicely to where it is now I think.
Sideway trading for a few days now.

Whats next?

It certainly recovered and then some. However the manner in which this entire market is operating does not give me any confidence that this price level is sustainable for the long term, or even more worryingly, not a massive bubble that's going to crash on us. Unlike a flash crash in which things drop fast and recover quickly, a bubble bursting is a fast crash without the recovery. That's the definition of a bubble, and how you define it: an unsupportable price level that finally gives way and doesn't have the support to recover because it was irrational at that previous level.