Theories Abound After BTC Leaps While Bitmex is Down

cryptocuser 4 min read 231

Regardless of the outcome, the forthcoming days promise to be extremely interesting for dealers since they attempt to factor in a myriad of factors, while praying that Bitmex stays operational. The exchange traded $3.3 billion of BTC in the previous 24 hours, all of it’s on leverage of around 100x. Over-centralization is a recurring theme in cryptocurrency, also Bitmex, lead by the charismatic and unabashed Arthur Hayes, is merely the latest manifestation of the risks that occur when one thing has the power to call the shots.

Trade and Prices

Have to calculate your bitcoin holdings? Check our tools section.

BTC Breaks Through Resistance While Bitmex Smolders

In the aftermath of ‘the rekoning’, conspiracy theories had been in plentiful supply, with some accusing Bitmex of deliberately keeping its platform offline in order to profit. There’s absolutely no proof to support such an allegation, but hasn’t even stopped speculation out of mounting this was an inside job. If one platform has to call the shots (or rather the shorts), also stands to gain from disrupting its own service, it does not have any incentive to act ethically, critics claim.
Also read: Apple Co-Founder: Crypto World “Much like the Internet When it turned out Brand New”

While Bitmex fought to return online, traders trapped in shorts might just watch, helpless, as their positions were liquidated. Bitmex Rekt, an unofficial account that lists margin calls about the platform, moved into overdrive, tweeting outside “beyond godlike” destroys as position following position was wiped out.
It’s been a fascinating 12 hours for BTC, with the cryptocurrency eventually breaking through resistance levels. The majority of the play happened within the space of only a few minutes, when BTC gained $400 without repainting. It’s no denying, however, the event happened just as the popular cryptocurrency market Bitmex went offline. The encounter has left dealers crying foul and induced wild conspiracy theories to circulate.

Soon before 9pm EST on 21st August, bitcoin broke out of this resistance range it’s been trapped in for weeks, climbing to $6,800. Traders had despaired of BTC escaping the $6,100-$6,600 range it had been bouncing around in without the assistance of a significant exogenous event like ETF news. In the long run it was something that should have been a little event that triggered the breakout.

Beyond Godlike Kills Around the Board

Released at Wed, 22 Aug 2018 11:50:18 +0000

Following the Breakout, What ?

A controversial justification is that Bitmex was actually the target of a DDoS assault by an unidentified third party trying to control the market. If that was the situation, they were certainly powerful, and are most likely to have gained handsomely off the assault.

Do you believe Bitmex was the victim of a DDoS assault and can you believe marketplace manipulation is rife?

Images courtesy of Shutterstock, also Twitter.
No matter how it happened, the $6,600 resistance level, which had been defended for weeks, has been breached. It’s possible this might now turn into the new service level for BTC. With news of this bitcoin ETF impending, however, all attempts at TA could soon be rendered useless, as anything the results of the ETF conclusion, the marketplace is sure to move . Paradoxically, incidents like what happened on Bitmex would be the catalyst to get its SEC denying that an ETF on the reasons that bitcoin is too prone to manipulation. With the amount of BTC shorts nearing in a record high, there is also the possibility of a brief squeeze occurring as dealers are forced to buy more BTC to cover their positions. The last time that happened, on April 12, bitcoin jumped by nearly $1,000 in a day.

At around 9pm EST last night, BTC jumped by $400 in just a few moments

Bitmex, which had been advised to go offline for maintenance at 9pm EST for about 30 minutes, reopened on time in cancel-only mode. It immediately became clear that something wasn’t correct, prompting the market to converse “Many customers are reporting problem in logging in”. Trading stayed cancelled before 10pm, using Bitmex attributing the elongated downtime to a DDoS assault. Some dealers weren’t even buying it though.