The Reason of the Big Spike UP -BITCOIN = 1H UTC – Wednesday- Natural?

Hello Subscribers,

There was a big spike on BTC/USD at 1H UTC-  that was not expected, and that was not natural, but We found out what happened.

This market is so difficult to predict because there are so many factors that can influence Bitcoin and altcoins prices, but don’t worry, Moving Water is working really hard to spot the best trades, and to search all the factors all around that are going on in the Crypto Market to deliver to you the best service.

It was not an inside information about ETF tomorrow decision, neither was a market consolidation of a long run, as we posted yesterday, Bitcoin decision on 23rd about Bitcoin ETF has a very low probability to be approved, and if it gets delayed or denied, market will respond with a big drop on Bitcoin price.

So, bitcoin price took a major leap on Wednesday morning, spiking nearly $ 300 in less than a minute to break out of what had been two days of mostly sideways trading for the flagship cryptocurrency.

This is the Reason: 

The incident in question occurred at exactly 1:00 UTC, when BTC leaped from $ 6,466 to $ 6,745 during a single one-minute candle on Bitfinex, and the bitcoin price continued to increase from there, rising above the $ 6,800 mark and peaking at $ 6,899 before settling back down to a present value of $ 6,840 at 1:34 UTC.

bitcoin price
BTC/USD | Bitfinex

Early indications suggest that the price action, which came during a period of relatively-low trading volume in the cryptocurrency markets, may not be quite organic. That’s because it occurred at nearly the exact moment that BitMEX, a leveraged cryptocurrency trading platform that handles billions of dollars worth of contracts daily, went offline for scheduled maintenance.

As of the time of writing, BitMEX was beginning to resume services, though it had not yet re-enabled trading. Consequently, it remains to be seen whether the market will sustain these gains throughout the early morning hours.

Conclusion:

The end result was a short squeeze, lots of liquidation and stops hit, some stop buys filled at high prices (like $7k; above where BTC traded on other exchanges), and general chaos on Bitmex (as far as I could tell from social media and such).

So, don’t worry, as you can see on screen shot of BitMEX twitter posts, about the spike it was not an inside information on ETF, it was just that BTC picked up a bid exactly at 1:00 UTC – the moment when Bitmex, the world’s largest exchange for synthetic shorts, shut down for maintenance, forcing many to question the legitimacy of the price rally. As a result, investors may remain on the fence until a more credible evidence of the bullish breakout emerges.

Thank you for Choosing 

Moving Water