But it’s nice to see so many people think it had.
It’s only Tuesday and we’re already reminiscing on last week’s peaceful days. Shortly after yesterday’s report went out, bitcoin started dropping dangerously close to the bottom of the 2017 bull log channel. An hour later, it broke down from £5.9k ($8.4k) to a bottom of £5.4k ($7.7k).
It is the third time this has happened in 2018, following the drops on February 6th and March 17th. The first date marked the time that bitcoin found support at £4.2k ($6k) and the second refers to the dreadful weekend dip that many attributed to news that Google, Facebook, and Twitter were banning crypto-related adverts.
Today, news outlets may be held accountable for the decline as the Twitter ban has been confirmed and thus, pushing the total market cap to under £210 billion ($300 billion). Coupled with this, a Chief Investment Strategist from a major investment bank repeated the assertion. However, such news were already priced in. So, what was the cause?
Market influencers may be using Twitter to find and share manipulated crypto news, or FUD; feeble technical analysis — such as the latest Bart pattern, and even sophisticated tactics for reading order books. Are market makers who (or what) crypto-enthusiasts think they are?
People who use Twitter are traders just like you. These influencers may not have the necessary liquidity to be market makers. Except if trading low-volume alternative cryptoassets. Watch out as these are quite vulnerable to pump and dump schemes.
Major exchanges are providing liquidity to ensure traders get their orders filled quickly with the help of large investors, miners, and bots — the true market makers. To ensure these bots reflect on the prices regular traders are willing to pay with their limit orders — those which actually make the price for the asset being traded — bots need more than technical analysis to make decisions. The latest rumour on the block is that bots are following Twitter feeds, which is affecting their trades!
With the lack of news from the ICO world outside of France, let’s look out for what bitcoin can do today. Yesterday’s daily candle closed with more bearish signals and even bullish influencers are thinking we can see £2.1k ($3k). Worry not as we still have support at £4.2k ($6k)!
Yesterday we mentioned Litecoin was one of the projects to survive last week’s global crypto decline. It had appreciated due to LitePay, a startup that promised good news but just closed down. Its abrupt closure caused a 12% price decline.
Roger Ver is a Bitcoin early adopter and the main man behind Bitcoin Cash. During Satoshi Vision, a Bitcoin Cash conference in Tokyo, he presented an interesting lecture on ‘how a government could attack Bitcoin’s protocol’. Or not? Check the ‘spoofed’ slides here.
In the past 24 hours, the 10% drop didn’t affect some cryptoassets such as XVG or ZRX. What if they survived the downtrend due to “partnership announcements”?