Market report

TWITTER HAD NOTHING TO DO WITH IT

London Block Exchange

27th March 2018

But it’s nice to see so many people think it had.

TWITTER HAD NOTHING TO DO WITH IT

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?

TWITTER MIGHT HAVE HAD SOMETHING TO DO WITH IT

What if trading bots are analysing Twitter’s sentiment to buy and sell?

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!

WHAT TO LOOK OUT FOR

Filter the noise and stay ahead of the pack

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.

WHAT TO READ TODAY

An insight a day could give you more profits to play

On the 14th of March we shared an MIT paper on the valuation of crypto tokens. Here’s a great summary in case you didn’t have the chance to read it.

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”?

Here are two good overviews of why sensational headlines about Bitcoin’s node operators won’t be charged for running Bitcoin’s “illegal” software on their computers.

  • twitter
  • bitcoin
  • ban
  • bots
  • ICO
  • bitcoin cash
  • ZRX
  • pump and dump
  • FUD