Thank you for you standpoint. So it's possible but the bitcoin price is not related in any means to the important stock markets? I thought that it has an influence because china seems like a big player in bitcoin.
Bitcoin is moved up or down, primarily through market interactions of Bitcoin Whales, who seem to primarily be operating behind the big Chinese exchanges. But market participants love a good 'Fundamental Story' to either justify market actions, or justify their investments.
As the news of the 2nd China 7% equity slide and the subsequent suspension of trading hit, the bots on the CNY exchanges went wild. (
https://bitcointalk.org/index.php?topic=1317888.msg13471784#msg13471784). On OkCoin, around 750K of BTC was passed around Whale accounts (i.e. Painting the Tape) within 2800 and 2830 CNY. This gives the market the illusion of incredible interest in BTC, coming from China, that just so happened to coincide with the Stock Market crash. The easiest (but somewhat misguided) conclusion to make here, is that Bitcoin's volume was going through the roof as a result of Chinese investors fleeing into the 'safety' of Bitcoin. As the Chinese Whales started to push Bitcoin beyond is range boundaries, the retail investor jumped in, and in CNY terms, took Bitcoin from 2830, to 3070 on the back of around 100K BTC voume on OKCoin Cash Market. So, we have a situation where almost 95% of 1st hour break out candle volume, was traded right at the base of the candle, with the remaining 5% being repsonible for the rest of the break out on OKCoin, with of course, the Western USD/Eur exchanges following suit as CNY spot rose.
In summation, a fundamental news event hit the headlines. At this very point, Chinese Whales started ramping volume on CNY exchanges, by simply front running the market and passing large bundles of BTC to and fro accounts that they control, in order to give the illusion of a great big surge in interest. Taking these factors into consideration. Joe Sixpack soon jumped on the 'bandwagon', and started buying up Bitcoin, albeit on rather anaemic volume compared with what went before.
Spend too long hanging around forums like this, and you are liable to develop some very false paradigms and end up believing in a lot of shit. But make no mistake, Bitcoin is one highly cornered, and manipulated market. 'Fundamentals' here, don't play a role in the market in an organic sense that everyone would like to think that they did, but more in the sense of stories being used to justify whale market engineering and encourage the public to jump on the wagon, whether that be buying expensive Bitcoin from whales, or selling cheap Bitcoin to whales.
If you want to look at the 'health' of the current organic BTC market, go look at the steadily declining volume on Stamp, or Finex. If they were in control, then BTC would surely be in for a big correction here. However, go and look the massively increased volume on the CNY exchanges. In contrary to the USD exchanges, these volume profiles are telling you that the current market price is more or less entirely valid, and that much more upside is the in the pipelines. Yes, it is true that most of that volume is FAKE (manufactured in the way I describe above, i.e. Pass the Parcel on 0% fees), but is also telling you the intentions of the whales who are controlling this market, and those intentions are Rocket 2 Da Moon! (and then dump shitloads of BTC before rocket runs out of fuel)
Who wins out here? The whale manipulators, or the organic market forces?
Bitcoin at this stage is nothing more than a penny stock, that may or may not turn into something viable somewhere down the line. But for now, it is simply a game of try to catch the momentum that the Market Makers inject into the asset, but just don't delude yourself into believing that any of this momentum has any solid fundamental justifications.
