The correction and recovery in a nutshell.

[MatTheCat]

If Huobi wasn't trading right now, Bitcoin would not have went down a jot, we would still be hovering between a $6 range in the lower $800s.

Huobi started the sell off and Bitstamp resisted it to the utmost, until the pressure became too great that enough normal Joe /Bloggs market players started to sell-off.

However since Huobi was trading, Bitcoin got driven down, and then recovered to 796 on Stamp....then the Ask walls started piling up. the price started dropping fast once again, it looked like a foregone conclusion, so I decided to short. within minutes I was in the green! However, three seperate purchases, initiated at at certain points in the chart development, swallowed up the towering Ask walls that were chasing the spot price down. I figured out that some entity on Stamp used $750K of purchasing power to preserve the BTC spot price in four seperate mammoth sales that appeared out of knowhere. No such freak volume was seen on any other exchange and this volume far outweighed the volume on the bounce from $767. Needless to say, the other exchanges followed Stamp's lead.

There are powerful forces at work primarily on Stamp but no doubt with manipulated Bot trading on all USD exchanges who have tasked themselves with holding up Bitcoins value. I can only guess what their motivations might be, but certain not to reward 'holders' for their kind 'support'.

Fkn sharks in these waters and I dont like it one little bit and I wouldn't be surprised if it all culminates in a whole lot of people getting royally fkd up the arse.

[TERA]

It's too early to call this a "recovery". It could be the first dead cat bounce in a multi-week downtrend.

[T.Stuart]

"sell-off"

"recovery"

Sorry to break it to you fellas, but we are still in a long consolidation.

In a day or three we will be at the end of this consolidation.

[T.Stuart]

Fkn sharks in these waters and I dont like it one little bit and I wouldn't be surprised if it all culminates in a whole lot of people getting royally fkd up the arse.

Beginning with yourself of course! 

Sorry, couldn't resist! 

[MatTheCat]

It's too early to call this a "recovery". It could be the first dead cat bounce in a multi-week downtrend.

U aren't a blinkered bull-tard TERA like most on here.

Go look at the 1 minute chart at three massive purchases that devoured an Ask wall chasing rapidly after the spot price. Believe me when I tell you these purchases came out of knowhere. One minute I had my short stop loss sitting a couple of cents above break even point ($785), with 350 Ask bids between me and spot price, then with an instant, my stop loss fell to within 10 BTC of Asks of the spot price. I shifted it back to $790 where there were a further 300 Ask bids, but these guys meant business. Seeing the forces at work I admitted defeat and took the hit.

Had it not been for these monster flash BTC purchases, that came out of knowhere and were not replicated on any other exchange, we would have already have had our dead cat bounce and we would have shot down past $765 support. Since the China selling pressure obviously fucked up the Price Holding Bot algorithms, this was a clear case of emergency price support action. No ifs or buts about it.

It remains to be seen whether this entity can hold up Bitcoin in the face of a mass Chinese sell-off, but every indication that I get from absolutel fkn hours spent focusing on these charts and the market action, I would suggest that a very determined attempt is being made.

Fkn sharks in these waters and I dont like it one little bit and I wouldn't be surprised if it all culminates in a whole lot of people getting royally fkd up the arse.

Beginning with yourself of course! 

Sorry, couldn't resist! 

Sorry T.Stuart, I already made $1200 from my short sell. Lost $150 on second short sell, though but still not bad for a nights work.

[TERA]

When confused about action on Bitstamp, the explanation is likely Bitfinex.

[MatTheCat]

When confused about action on Bitstamp, the explanation is likely Bitfinex.

LOL.

No.

(unless someone operating through Bitfinex conspired to spend the best part of $750K just to support the Bitcoin price)

[T.Stuart]

It's too early to call this a "recovery". It could be the first dead cat bounce in a multi-week downtrend.

U aren't a blinkered bull-tard TERA like most on here.

Go look at the 1 minute chart at three massive purchases that devoured an Ask wall chasing rapidly after the spot price. Believe me when I tell you these purchases came out of knowhere. One minute I had my short stop loss sitting a couple of cents above break even point ($785), with 350 Ask bids between me and spot price, then with an instant, my stop loss fell to within 10 BTC of Asks of the spot price. I shifted it back to $790 where there were a further 300 Ask bids, but these guys meant business. Seeing the forces at work I admitted defeat and took the hit.

Had it not been for these monster flash BTC purchases, that came out of knowhere and were not replicated on any other exchange, we would have already have had our dead cat bounce and we would have shot down past $765 support. Since the China selling pressure obviously fucked up the Price Holding Bot algorithms, this was a clear case of emergency price support action. No ifs or buts about it.

It remains to be seen whether this entity can hold up Bitcoin in the face of a mass Chinese sell-off, but every indication that I get from absolutel fkn hours spent focusing on these charts and the market action, I would suggest that a very determined attempt is being made.

Can I ask, is anyone able to buy Bitcoins without being accused of being an algorithm-monster price-holding crash-delaying party-pooper?

Fkn sharks in these waters and I dont like it one little bit and I wouldn't be surprised if it all culminates in a whole lot of people getting royally fkd up the arse.

Beginning with yourself of course! 

Sorry, couldn't resist! 

Sorry T.Stuart, I already made $1200 from my short sell. Lost $150 on second short sell, though but still not bad for a nights work.

I know. Congratulations! But like I said, I couldn't resist! It's the wonderful vocabulary you use. 

[aminorex]

Large orders sit in the books but are not shown.  When they become active, they can light up.  

If you short right above a major resistance line, you have to expect buying to occur.   I know I was buying in that range.

[TERA]

When confused about action on Bitstamp, the explanation is likely Bitfinex.

LOL.

No.

(unless someone operating through Bitfinex conspired to spend the best part of $750K just to support the Bitcoin price)

Bitstamp is pretty dead without bitfinex and bitfinex brings all the life into bitstamp.

Bitfinex doesn't appear on the bitstamp order book yet executes there. Also, it has:
4:1 margin trading
Shorting
Fill or kill orders
Stop loss / trigger orders
Trailing stop loss orders
Dark orders

The dual order book systems and all these crazy orders make it seem like somthing fishy going on at bitstamp but it's really Bitfinex. I trade on Bitfinex and watch these 500-1000btc buy orders randomly pop up on the bidside all the time and then halfway execute on the bitfinex internal order book while halfway executing on the bitstamp order book.

[Apostata]

Great analysis MatTheCat

I watched the thing all day (I am in Asia for a while).  Clearly started on Huobi, followed by OKCoin then the western exchanges

The one odd thing I noticed were a TON of little tiny orders.  Now I don't watch this closely and I don't really daytrade so I know everyone is going to say "that's normal" and "those are bots".  But these were $1-$2 orders (0.001 BTC in some cases), and were clearly pushing the price down.  It was odd.

I am a believer that Huobi is driving these mini "events" by trading on their own exchange in order to capitalize on their current position as the largest exchange in the world.  They will not be around for long.  

Edit: Spelled your name wrong

[MatTheCat]

Bitstamp is pretty dead without bitfinex and bitfinex brings all the life into bitstamp.

Bitfinex doesn't appear on the bitstamp order book yet executes there. Also, it has:
4:1 margin trading
Shorting
Fill or kill orders
Stop loss / trigger orders
Trailing stop loss orders
Dark orders

I have been on Bitfinex all night nursing my rather successfull short bet, and then latterly my not so successful short bet. When I place an order on Bitfinex to be executed on Stamp, I see it lining up on Stamp's ticker. I normally route my Bitfinex orders through Stamp because the volume on Bitfinex itself is rather sparse. Stamp volume in comparison is enormous.

Go back and look at the bounce back from the rapid drop to 775 and you will see it makes no sense that this single one off $250K order (that was done within a second), would be a big load of premade orders coming in from Bitfinex, as they would have been triggered before this point......unless a big bnuch of traders just coincidentally made a big mass of orders right at the price within the three minutes preceeding the BTC spot falling right through this range, which just so happened to save Bitcoin's neck.

Its manipulation, plain and simple, and manipulation at a huge cost to someone with very deep pockets.

[pungopete468]

Bitstamp is pretty dead without bitfinex and bitfinex brings all the life into bitstamp.

Bitfinex doesn't appear on the bitstamp order book yet executes there. Also, it has:
4:1 margin trading
Shorting
Fill or kill orders
Stop loss / trigger orders
Trailing stop loss orders
Dark orders

I have been on Bitfinex all night nursing my rather successfull short bet, and then latterly my not so successful short bet. When I place an order on Bitfinex to be executed on Stamp, I see it lining up on Stamp's ticker. I normally route my Bitfinex orders through Stamp because the volume on Bitfinex itself is rather sparse. Stamp volume in comparison is enormous.

Go back and look at the bounce back from the rapid drop to 775 and you will see it makes no sense that this single one off $250K order (it was done within a second) would be a big load of premade orders coming in from Bitfinex, as they would have been triggered before this point......unless a big bnuch of traders just coincidentally made a big mass of orders right at the price within the three minutes preceeding the BTC spot falling right through this range, which just so happened to save Bitcoin's neck.

Its manipulation, plain and simple, and manipulation at a huge cost to someone with very deep pockets.

Considering the scope of the attention and the lightning fast adoption of late I'd be willing to bet that there are some extremely deep pockets involved today that weren't involved a month ago.

Considering how small Bitcoin is right now and the speculation that it will continue to achieve more adoption as time goes on; The pockets could easily be deep enough to buy out the remainder of China and the SR coins without even breaking a sweat...

[MatTheCat]

Considering the scope of the attention and the lightning fast adoption of late I'd be willing to bet that there are some extremely deep pockets involved today that weren't involved a month ago.

Considering how small Bitcoin is right now and the speculation that it will continue to achieve more adoption as time goes on; The pockets could easily be deep enough to buy out the remainder of China and the SR coins without even breaking a sweat...

If wanted to acquire BTC I would want the market to take a death plunge. Indeed, I do want to acquire lots of Bitcoins which is exactly why I want the market to take a death plunge, I however don't have the power to make this happen and have to satisfy myself with remaining astute as possible to good opportunities that present themselves.

Far from bringing down the price, these gargantuan flash purchases were strategically placed and triggered to put the halts on big nasty post bounce slip that was gaining momentum rapidly. It looked so certain and then BANG, $250K order within a second, a few minutes later, a $175K order followed by a $140K order, both of them executed within a second. If you study the charts closely, you will see that these large BTC purchases saved Bitcoins bacon. If these were genuine investments from someone with deep pockets, then this person is a fucking horrendous trader as if he had just sat back and let the panic do its work, he could have gotten these Bitcoins $100 per unit cheaper.

[Miz4r]

If these were genuine investments from someone with deep pockets, then this person is a fucking horrendous trader as if he had just sat back and let the panic do its work, he could have gotten these Bitcoins $100 per unit cheaper.

He's not the only trader on Bitstamp/Bitfinex with deep pockets you know, maybe he missed the initial bounce from the crucial $767 support and didn't want to be beaten again by someone else with deep pockets. There's no way of telling whether the price would have dropped $100 further if he had waited, maybe someone else would have stepped in and bought up the coins. Whales have to fight too amongst each other for the coins, not everything you see is manipulation if it doesn't work in your favor.

[kwest]

[oda.krell]

Considering the scope of the attention and the lightning fast adoption of late I'd be willing to bet that there are some extremely deep pockets involved today that weren't involved a month ago.

Considering how small Bitcoin is right now and the speculation that it will continue to achieve more adoption as time goes on; The pockets could easily be deep enough to buy out the remainder of China and the SR coins without even breaking a sweat...

If wanted to acquire BTC I would want the market to take a death plunge. Indeed, I do want to acquire lots of Bitcoins which is exactly why I want the market to take a death plunge, I however don't have the power to make this happen and have to satisfy myself with remaining astute as possible to good opportunities that present themselves.

Far from bringing down the price, these gargantuan flash purchases were strategically placed and triggered to put the halts on big nasty post bounce slip that was gaining momentum rapidly. It looked so certain and then BANG, $250K order within a second, a few minutes later, a $175K order followed by a $140K order, both of them executed within a second. If you study the charts closely, you will see that these large BTC purchases saved Bitcoins bacon. If these were genuine investments from someone with deep pockets, then this person is a fucking horrendous trader as if he had just sat back and let the panic do its work, he could have gotten these Bitcoins $100 per unit cheaper.

It looks to me like you never traded in larger volume... I'm far from being a whale, but the scenario you described above is something I have (roughly) played through myself. When trading in larger volume there are two questions that need to be balanced against each other: where are we right now in the trend, and is there/will there be enough on the order book to capture my order without too much slippage. So I often place orders well "before the trend ends" because experience showed me that once I wait until the trend naturally reverses, the order book composition is such that slippage eats any additional profits I got by waiting.

[Apostata]

Far from bringing down the price, these gargantuan flash purchases were strategically placed and triggered to put the halts on big nasty post bounce slip that was gaining momentum rapidly. It looked so certain and then BANG, $250K order within a second, a few minutes later, a $175K order followed by a $140K order, both of them executed within a second. If you study the charts closely, you will see that these large BTC purchases saved Bitcoins bacon. If these were genuine investments from someone with deep pockets, then this person is a fucking horrendous trader as if he had just sat back and let the panic do its work, he could have gotten these Bitcoins $100 per unit cheaper.

But couldn't those have just been orders being filled? 

[Apostata]

Considering the scope of the attention and the lightning fast adoption of late I'd be willing to bet that there are some extremely deep pockets involved today that weren't involved a month ago.

Considering how small Bitcoin is right now and the speculation that it will continue to achieve more adoption as time goes on; The pockets could easily be deep enough to buy out the remainder of China and the SR coins without even breaking a sweat...

If wanted to acquire BTC I would want the market to take a death plunge. Indeed, I do want to acquire lots of Bitcoins which is exactly why I want the market to take a death plunge, I however don't have the power to make this happen and have to satisfy myself with remaining astute as possible to good opportunities that present themselves.

Far from bringing down the price, these gargantuan flash purchases were strategically placed and triggered to put the halts on big nasty post bounce slip that was gaining momentum rapidly. It looked so certain and then BANG, $250K order within a second, a few minutes later, a $175K order followed by a $140K order, both of them executed within a second. If you study the charts closely, you will see that these large BTC purchases saved Bitcoins bacon. If these were genuine investments from someone with deep pockets, then this person is a fucking horrendous trader as if he had just sat back and let the panic do its work, he could have gotten these Bitcoins $100 per unit cheaper.

It looks to me like you never traded in larger volume... I'm far from being a whale, but the scenario you described above is something I have (roughly) played through myself. When trading in larger volume there are two questions that need to be balanced against each other: where are we right now in the trend, and is there/will there be enough on the order book to capture my order without too much slippage. So I often place orders well "before the trend ends" because experience showed me that once I wait until the trend naturally reverses, the order book composition is such that slippage eats any additional profits I got by waiting.

+1  And buying in at $765 or $775 isn't really a big deal. 

[MatTheCat]

He's not the only trader on Bitstamp/Bitfinex with deep pockets you know, maybe he missed the initial bounce from the crucial $767 support and didn't want to be beaten again by someone else with deep pockets. There's no way of telling whether the price would have dropped $100 further if he had waited, maybe someone else would have stepped in and bought up the coins. Whales have to fight too amongst each other for the coins, not everything you see is manipulation if it doesn't work in your favor.

I don't know if it was you, but someone on here told me that my ranting about the blatant bot price market engineering was akin to a kid crying cos he is getting beat on a computer game. And it's true. These markets are manipulated. I don't who is doing it or what there intentions are, or when they are going to do it. But if I am going to play in Bitcoin that is the rules. The rules of Bitcoin is that the 99% are playing on a shady underhand uneven playing field, which I suppose doesn't make it much different from every other market in the world aside from it perhaps being even less regulated.

It seems to me that there are two prominent entities in Bitcoin right now. One of those entities (the Huobi monster) appears to be Chinese in flavour. If this entity gets it's way, then Bitcoin is going to crash through the floor-boards in spectacular fashion. The other entity is the Bitstamp monster, who is in league with his castrated and by now rather ineffectual peer, the MtGox monster. If this entity gets it's way, the Bitcoin price will be held up and stabilised, or at least until a certain point in time when the price stabilisation has served its purpose.

It is very possible that there is some kind of war going on betwen Chinese entities and Western entities for control of Bitcoin. Although I completely lack the details, the template of the forces at work are very clear to me.

For this reason, although the charts are screaming CRASH to me, I am presently long Bitcoin. For the time being, I reckon Bitcoin is a protected species (I will think about cashing out when we trend up to $930).