Well, Bitcoin (BTC) decided to take the bearish path, or maybe larger players that shape the market made the choice for it. The ascension from the narrowing pennant proved to be a fakeout and a tweezer top at $10,278 was followed by a sharp reversal all the way to the bottom of the larger bull pennant that Bitcoin has traded in since topping out at $13,800 on June 26th.
The majority of popular crypto-Twitter traders fell mysteriously mute as the carnage unfolded on August 28. As mentioned previously, the danger of issuing price action absolutes rooted in hubris is that the unpredictably cruel hands of fate often bring down the self-assured faster than Icarus fell in his ill-planned mission to escape Crete.
As the day progressed, however, analysts began to piece together a narrative that explained how the bear break could have occured and some interesting theories surfaced.
A market maker makes a whale-sized trade
A $120 million buy wall on BitMEX stands out as an anomaly, (if those exist in the crypto market) that could have impacted today’s pullback but that is yet to be determined. One trader who goes by the moniker CryptoMonk suspects that the buy wall was “someone trying to unload some corn.” Or, in simpler terms, a large seller threw up a buy wall to maintain Bitcoin price while unloading from their own stack.
Another theory stipulates that the buy wall manipulates prices to meet a trader’s asks. At the end of the day the carnage resulted in a $144 million liquidation of longs on BitMEX and Bitcoin bulls had a little pep taken out of their step.
Whale Alert tracks $500 million in BTC transfers
There has also been an unusual number of large Bitcoin transfers taking place. On August 27 Whale Alert, a Twitter-based crypto transaction bot, flagged an 8,180 BTC ($82 million) transfer from one unknown wallet to another unknown wallet. This was the third massive transfer to take place over the past three days.
Just a day earlier 12,000 BTC ($124 million) was transferred and on August 24, 33,706 ($341 million) was transferred. While large crypto transactions are normal for the sector, half a billion dollars in Bitcoin over three days is notable. Further analysis of the transactions shows that these mega transfers are being consolidated within a single address…
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