Bitcoin price manipulation patterns

[imapessimist]

This is quite interesting.  I have been thinking about it.   There is manipulation but how much isn't clear.  I read whales put in orders to buy/sell then don't follow them through so that makes an impact.  But if the price goes low will people rush to buy or wait till the price goes lower still.  That's the question.  I was myself thinking there will be a big crash later today or tonight and then it will be black Monday.  Even if that doesn't happen I think a climb back will be very very slow.  And no rocketing prices. 

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[Apekool]

There`s no single manipulator,who is rich and powerfull enough to push the prices down.
There should be a group of big crypto whales and they sell together,forcing the price to go down.When the prices go down,all the small traders start to follow the trend,and eventually the market is manipulated.
Slow and steady decline means small panic.Fast and rapid price crash means big panic.Both scenarios can be created by manipulators.
What do you mean by "artificially bring the prices down to cause panic selling"?

on Gate.io operates a trading bot that exchanges large volumes of tokens cross exchange by using intermediate wallet addresses on the Ethereum blockchain. A few days ago it became clear that the bot is trading to Binance (among other exchanges) and uses several user accounts there. Deposits/withdrawals are made by several different Ethereum wallet addresses each time, and those addresses doing deposits/withdrawals not exceeding <10000, with now and then an exception with a massive withdrawal. See below for an example of the "intermediate" wallet address used by the bot, of both cases mentioned earlier:

https://etherscan.io/token/Quantstamp?a=0xa8fb3501575c7c2b1ba0eacf96c62a0fe1338a5c

Here's another that's been active earlier today:

https://etherscan.io/address/0x77cdc9a4f33f8cf2392a651553519923ef23808a#tokentxns

I'm compiling a list at the moment of the wallets I've been able to track so far, and will open a topic later today listing them. There are so many addresses involved, some used a single time, some used at a daily basis, that I will probably miss most of them. Still, there are many, and it is not only improbable for a human to act like this, it is also highly unlikely. Connect that to the screenshots I made of the QSP order book, trade history and charts at Gate.io. (just a fraction of the total, I tried to log the order book of Gate.io during one day, and fell asleep at some point). And this goes for loads of other tokens as well, especially those which are popular (BAT, REQ, JNT, TNC, EOS, KyberNetwork, OMG...)

Link to screenshot album here: https://imgur.com/a/jbM45 (chronological order is from bottom to top).

Alll screenshots, atm >300, include a digital datestamp and will be uploaded as soon as I've sorted it a bit.

[Apekool]

Here's the wallet address of the Gate.io exchange:
https://etherscan.io/address/0x05ee546c1a62f90d7acbffd6d846c9c54c7cf94c

Here's the wallet address of the Binance exchange holding ether tokens:
https://etherscan.io/address/0x3f5ce5fbfe3e9af3971dd833d26ba9b5c936f0be#tokentxns

Here's the wallet address of the KuCoin exchange holding ether tokens:
https://etherscan.io/address/0x2b5634c42055806a59e9107ed44d43c426e58258

Here's the wallet address (4) of the Bitfinex exchange holding ether tokens:
https://etherscan.io/address/0x876eabf441b2ee5b5b0554fd502a8e0600950cfa#tokentxns

Pick a popular token, and try to find a wallet address that acts as an intermediate between the exchanges. It isn't that difficult, it's happening right now, try to find a pattern.

[chocolaty]

I don't think it is possible for a small group of individual to be able to manipulate a coin as big as bitcoin. This must be a huge group of influential and financially capable individuals. I am not fully aware of the whale stuff, can anyone enlighten me about this thing?

[CONANEDO]

the problems here is there are pump and dump groups and also other similar groups to take advantage to buy and sell bitcoin.when bitcoin was pump to 20K obviously this is act by some groups of peoples.maybe they give the target to dump at 20K and of course most of peoples with trading experiences know this is the time to sell their bitcoin.they sell and cash out the money.what they do next is to wait until bitcoin drop to lowest price so they can buy back.and FUD is also playing with BTC price.

[Apekool]

I don't think it is possible for a small group of individual to be able to manipulate a coin as big as bitcoin. This must be a huge group of influential and financially capable individuals. I am not fully aware of the whale stuff, can anyone enlighten me about this thing?

Price Manipulation in the Bitcoin Ecosystem

[btcrut2017]

IMO the price of bitcoin strongly reacted to governments move to regulate crypto exchanges. Per observation, it started to go down when South Korean government is planning to ban crypto, then followed by hacking and Tether incident. If there could be a manipulator then he should have paid a substantial amount of money to governments to crack down on cryptos in order to create FUD then panic sell. Just my two-cents thought.

[Sir Cross]

the problems here is there are pump and dump groups and also other similar groups to take advantage to buy and sell bitcoin.when bitcoin was pump to 20K obviously this is act by some groups of peoples.maybe they give the target to dump at 20K and of course most of peoples with trading experiences know this is the time to sell their bitcoin.they sell and cash out the money.what they do next is to wait until bitcoin drop to lowest price so they can buy back.and FUD is also playing with BTC price.

I don't think that the 20K pump was made by the whales. They don't have that much power, however a price dip may be caused by them. The 20K pump was likely made by the sudden surge of buyers when bitcoin became mainstream all of a sudden. Now that most of those buyers are now exiting, the price is going down. Whales are really influential and powerful, yes, but there are still many external factors which affects the price greatly and this is not in the hands of others.

[Canis Majoris]

This is quite interesting.  I have been thinking about it.   There is manipulation but how much isn't clear.  I read whales put in orders to buy/sell then don't follow them through so that makes an impact.  But if the price goes low will people rush to buy or wait till the price goes lower still.  That's the question.  I was myself thinking there will be a big crash later today or tonight and then it will be black Monday.  Even if that doesn't happen I think a climb back will be very very slow.  And no rocketing prices. 

That's why it doesn't make sense to close your position at once. It would make sense sell slowly giving people time to rush to buy what they think low. You can even try to tempt them into a bull trap when they think the plunge is over. Then you start selling again.

I don't think it is possible for a small group of individual to be able to manipulate a coin as big as bitcoin. This must be a huge group of influential and financially capable individuals. I am not fully aware of the whale stuff, can anyone enlighten me about this thing?

You would be surprised. Here's an example of someone who has over 167,000 BTC in his wallet sending thousands of bitcoins to Bittrex account some time ago:

3,000 and 4000 bitcoins sent 5 days ago (transaction 8d8bdbb42f6e40370e317587734c0aa7adfbf2a5fece88f8adaee3ed6659ad3d and transaction a6bd36443feca2554f59c5db0fc1a8e27a52540d0b2207a162a6c8883ce92991)

5,000 bitcoins sent today (transaction 6048aaab45e9e2e5c66b2b2cde78205cb81269eb00c4a996b61b424c87448c72)

The Bitcoin address 1N52wHoVR79PMDishab2XmRHsbekCdGquK belongs to Bittrex. I can't even imagine what price would look like if all 167,000 bitcoins got dumped at once.

[wuvdoll]

There`s no single manipulator,who is rich and powerfull enough to push the prices down.
There should be a group of big crypto whales and they sell together,forcing the price to go down.When the prices go down,all the small traders start to follow the trend,and eventually the market is manipulated.
Slow and steady decline means small panic.Fast and rapid price crash means big panic.Both scenarios can be created by manipulators.
What do you mean by "artificially bring the prices down to cause panic selling"?

I wouldn't call this decline slow, slow is over weeks but not like today and yesterday. If it wasn't a single manipulator or big whale cashing out, why are the prices going down in this manner? It looks like someone intentionally and deliberately keeps the rate constant to bring it to a point when people think it's over and freak out mindlessly selling their coins. That's what I mean by artificially bringing the prices down to instigate an avalanche-like panic selling. When the prices start crashing on their own.

You think this decline started happening two days ago ?
You need to take a look at the 1 day chart and start counting the candles from when it started showing red, may be you will understand that this started a long time ago.

Just like the OP said, it is always a gradual process, they are whales, they know what they are doing, they come together and then play with emotions of traders to make a pretty good gain from it. Unfortunately, we have a lot of weak hands and traders in crypto, so that makes it even better for them.

[raven7886]

As Bonsaiv points out, this single-stroke, one fell move, would never have the intended effect, if in fact the manipulation were to happen that way. It might result in a momentary flash crash, but then prices would restabilise pretty quickly. Single entities have been discussed of course, with some compelling evidence, especially by this guy from Hackernoon: hackernoon.com/meet-spoofy-how-a-single-entity-dominates-the-price-of-bitcoin-39c711d28eb4 and his other articles.

Spoofy may not be real, but the narrative is interesting and not entirely unscientific (otherwise ignoring the choice of language).

Think about this though, these would-be manipulators would surely not want to kill their golden goose. Even if they brought the price down, it would only be for them to re-enter into long positions. Why make a few billion today when you could be making hundreds of millions for many tomorrows?

That your last statement in fact caps it all. These are the same guys who have been in the wall street, so a new market like this with a lot emotional investors and traders is like a pretty gold platform for them to play on. They have been good at manipulations, they have the resources, they are psychologically sound and know how to input that knowledge on charts and they gladly do their thing until they are good enough like you said to buy back for long or until they see that the bears are worn out.

[Canis Majoris]

There`s no single manipulator,who is rich and powerfull enough to push the prices down.
There should be a group of big crypto whales and they sell together,forcing the price to go down.When the prices go down,all the small traders start to follow the trend,and eventually the market is manipulated.
Slow and steady decline means small panic.Fast and rapid price crash means big panic.Both scenarios can be created by manipulators.
What do you mean by "artificially bring the prices down to cause panic selling"?

I wouldn't call this decline slow, slow is over weeks but not like today and yesterday. If it wasn't a single manipulator or big whale cashing out, why are the prices going down in this manner? It looks like someone intentionally and deliberately keeps the rate constant to bring it to a point when people think it's over and freak out mindlessly selling their coins. That's what I mean by artificially bringing the prices down to instigate an avalanche-like panic selling. When the prices start crashing on their own.

You think this decline started happening two days ago ?
You need to take a look at the 1 day chart and start counting the candles from when it started showing red, may be you will understand that this started a long time ago.

Just like the OP said, it is always a gradual process, they are whales, they know what they are doing, they come together and then play with emotions of traders to make a pretty good gain from it. Unfortunately, we have a lot of weak hands and traders in crypto, so that makes it even better for them.

I'm the OP, lol. Truth be told, I've been following the price for pretty long. Should I say that I'm kinda day-trader? It was a gradual process which brought the prices down so much without even a chance of a slightest pullback. This was the most frightening thing in the whole business. Believe me I can tell the difference between someone steadily pressing prices down and organic decline or even organic crash, where you can catch pullbacks and reversals every now and then. It was like a smart trader slowly but surely closing a huge position.

[harri74]

There`s no single manipulator,who is rich and powerfull enough to push the prices down.
There should be a group of big crypto whales and they sell together,forcing the price to go down.When the prices go down,all the small traders start to follow the trend,and eventually the market is manipulated.
Slow and steady decline means small panic.Fast and rapid price crash means big panic.Both scenarios can be created by manipulators.
What do you mean by "artificially bring the prices down to cause panic selling"?

I wouldn't call this decline slow, slow is over weeks but not like today and yesterday. If it wasn't a single manipulator or big whale cashing out, why are the prices going down in this manner? It looks like someone intentionally and deliberately keeps the rate constant to bring it to a point when people think it's over and freak out mindlessly selling their coins. That's what I mean by artificially bringing the prices down to instigate an avalanche-like panic selling. When the prices start crashing on their own.

You think this decline started happening two days ago ?
You need to take a look at the 1 day chart and start counting the candles from when it started showing red, may be you will understand that this started a long time ago.

Just like the OP said, it is always a gradual process, they are whales, they know what they are doing, they come together and then play with emotions of traders to make a pretty good gain from it. Unfortunately, we have a lot of weak hands and traders in crypto, so that makes it even better for them.

I'm the OP, lol. Truth be told, I've been following the price for pretty long. Should I say that I'm kinda day-trader? It was a gradual process which brought the prices down so much without even a chance of a slightest pullback. This was the most frightening thing in the whole business. Believe me I can tell the difference between someone steadily pressing prices down and organic decline or even organic crash, where you can catch pullbacks and reversals every now and then. It was like a smart trader slowly but surely closing a huge position.

At last! Someone can see what I see - thank god for this thread. Does anyone else see the organic growth stop around $6k on the way up? May be $6k IS the organic floor? Another point. is it feasible for people/institutions with very deep pockets to start buying as much BTC as possible thus driving the price up prior to Christmas only to then sell en masse, bringing the price down, ensuring futures contracts execute and keeping the BTC price within a certain range? Or is this too simplistic?

[naidray]

There`s no single manipulator,who is rich and powerfull enough to push the prices down.
...

There are several big holders (e.g. the Winklevoss twins) who own a 5-digit or
even a 6-digit amount of BTC. They could completely wipe out the market with
a few huge market sells. Even 5000-1000 BTC would be enough to wipe
out the order book on most exchanges.

You seriously underestimate the amount of coins that some BTC whales actually
own.

Asides from underestimating the amount of coins some of these whales own, it is bad underestimating the level at which they can go with manipulations to get a whole lot of profit. We cannot play against them and the only thing we can do is to react with the market and think like them. They read charts like they are reading human emotions, and they have always known how to play this perfectly well.

Manipulator is not one, not even two, but they call them institutions. Group of whales who derive pleasure in manipulations for their own profit and then play their game on weak hands while the swim in a lot of money later on. It is obvious and only few can really know that.

Good stuff that you have written though and this should throw some light to some people on why they really do not need to panic in this kind of time.

[SCAR_8]

I definitely think there is a group of people that are manipulating BTC price and even the media. It's already getting hyped up in the media that it could grow the same or more in 18 as it did in 2017 and hit a Trillion dollar market cap as a whole. It's whatever though. I've yet to loose a dime hodling. I'm still in the green on my overall investment right now.

[HasHe]

Yes,while trying to dump our coins,if we sell all our coins at once,it would create a quick fall in price and then we will not be getting fair price.So,they would try to dump their coins gradually and by this way,their job would be done easily.

Earlier,manipulation was more when chinese dominated the market.Then it was said that since bitcoin has huge marketcap now and users widely spread all over the world,there would be no manipulation.

But now with big financial firms entering bitcoin market by launching bitcoin futures,it seems once again manipulation is done.