It was quite of a ...bot rally
Updated
The whole day the price of ETH, BTC and NEO was artificially maintained by bots. There were multiple offers on the both sides + buy and sell walls, moving the direction to the magical 1100 USDT for the ETH and 11 500 for the BTC. If you take a close look at the minute charts of the 3 coins, you will see exactly same patern. Actually there was a research done couple of years ago, that if the the BOTs are not involved the price of a cryptocurrency will stay almost a flat line for a week and grow in a normal pattern, when news occur. This is not the case anymore. I just recall the Mt.Gox case. There were two BOTs there - Markus and Willy, that were manipulating the price and collecting BTC. The end of it was that Mt.Gox bancrupted, and someone vanish with some 500 million USD in BTC that time. They are still missing, as you know. Investigation found that one of the bots was operated by the exchange itself. I will assume that the other was operated by them as well. Many people lost a lot of money and we quickly forgot the case. Now we have 500 million missing in NEM from Coincheck. And...nobody cares again. Mt.GOx said back there their BTC were stollen by hakers. The same we heard from Coincheck. My point is that the boths operate now on Binance. The non existing offers they buy significantly pump the price, like Willy and Markus were doing on Mt. Gox, makes sense that the prices will be pumped once again and drain more accounts. I am not sure If you see bots on the other exchanges, since I only look at Bittrex and Binance now. On Bittrex there were BOTS before, but they made the rules tighter. And they do not need bots actually because the inlfated price is transferring to them after the pumps of Binance for example. The bots not only keep and rise the price, but also they stimulate the trade so the exchanges take commissions. Laaaaaaarge commissions. The more the trade, the higher the price, the higher the commissions. I strongly believe that by the end of this year lots of money will be stollen from the exchanges, and some of them will file unsolvency. The massive participation of Bots on Mt. Gox was mostly evident in December and January and later the BTC fall off the cliff. I expect several pumps on BTC, ETH and NEO as main coins now, and later they will be dumped after a new Mt.Gox case but in much larger scale. It was good that I already saw some comments of people commenting TOP traders, that the whole market is now operated by Bots and investors are no longer controling the price. You know, the TAs you look from the TOP traders...they are no longer valid. Nobody can tell you what is the overall idea of the people controlling the bots and the exchanges. The only thing I can tell you is that they will do it every day until the regulations or the ban of most of the exhchanges is done. If people start to complain to their governments, and it will happen soon or later, there will be severe regulations and many exchanges will bancrupt, and the prices dive. For now, instead of expecting some 8000 for a BTC, expect the unexpected. It was just a rehersal today to measure the reactions of people. Well, Bots are waiting for your money. If you ask my personal oppinion - the prices are inflated very, very much. The real value of the BTC is between 3000 and 8000. Ether 300-500. And that is way positive. Actually you would have Apple for 180 without any risk since they are selling luxury tech all arround the world the next 10 years.
Note
The point is that if the bots are owned by the exchange, they can rise the price, sell you expensive BTC and when everyone try to claim the BTC or the money, there will be no BTC and no money. This is the case of Mt. GOX the Biggest BTC exchange that time. Do you really think that 900 Billion dollars entered the crypto market? If even 30% of people try to get fiat out, some exchanges will start to collaps.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.