Theories Abound After BTC Leaps While Bitmex is Down
It’s been an interesting 12 hours for BTC, with the cryptocurrency finally breaking through resistance levels. Most of the drama took place within the space of just a few minutes, when BTC gained $400 without blinking. It is no coincidence, however, that the event took place just as the popular cryptocurrency exchange Bitmex went offline. The experience has left traders crying foul and caused wild conspiracy theories to circulate.
BTC Breaks Through Resistance While Bitmex Smolders
Shortly before 9pm EST on 21st August, bitcoin broke out of the resistance range it has 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 aid of a major exogenous event such as ETF news. In the end it was something that ought to have been a minor event that triggered the breakout.
Bitmex, which had been scheduled to go offline for maintenance at 9pm EST for 30 minutes, reopened on time in cancel-only mode. It immediately became clear that something wasn’t right, prompting the exchange to tweet "Some users are reporting difficulty in logging in”. Trading remained cancelled until 10pm, with Bitmex attributing the extended downtime to a DDoS attack. Some traders weren’t buying it though.
Beyond Godlike Kills Across the Board
While Bitmex struggled to get back online, traders trapped in shorts could only watch, helpless, as their positions were liquidated. Bitmex Rekt, an unofficial account that records margin calls on the platform, went into overdrive, tweeting out "beyond godlike” kills as position after position was wiped out.
In the aftermath of ‘the rekoning’, conspiracy theories were in plentiful supply, with some even accusing Bitmex of deliberately keeping its platform offline in order to profit. There is no evidence to support such an allegation, but that hasn’t stopped speculation from mounting that this was an inside job. To critics, it’s further evidence of bitcoin manipulation and another example of why margin trading is dangerous. If one platform gets to call the shots (or rather the shorts), and stands to profit from disrupting its own service, it has no incentive to act ethically, critics claim.
A less controversial explanation is that Bitmex was genuinely the target of a DDoS attack by an unknown third party seeking to manipulate the market. If that was the case, they were certainly successful, and are likely to have profited handsomely off the attack.
After the Breakout, What Next?
Regardless of how it happened, the $6,600 resistance level, which had been fiercely defended for weeks, has been breached. It is possible that this could now become the new support level for BTC. With news of the bitcoin ETF imminent, however, all attempts at TA could soon be rendered meaningless, as whatever the outcome of the ETF decision, the market is sure to move violently. Ironically, incidents such as that which occurred on Bitmex could be the catalyst for the SEC denying an ETF on the grounds that bitcoin is too prone to manipulation. With the number of BTC shorts nearing at a record high, there is also the possibility of a short squeeze occurring as traders are forced to buy more BTC to cover their positions. The last time this occurred, on April 12, bitcoin leapt by almost $1,000 in a day.
Whatever the outcome, the coming days promise to be extremely interesting for traders as they try to factor in a myriad of variables, while praying that Bitmex remains operational. The exchange traded $3.3 billion of BTC in the last 24 hours, most of it on leverage of up to 100x. Over-centralization is a recurring theme in cryptocurrency, and Bitmex, lead by the charismatic and unabashed Arthur Hayes, is merely the latest manifestation of the dangers that occur when a single entity has the power to call the shots.
Theories Abound After BTC Leaps While Bitmex is Down - Altcoin Synergy Crypto Currencies Technical Analysis Bitmex, which had been scheduled to go offline for maintenance at 9pm EST for 30 minutes, reopened on time in cancel-only mode. While Bitmex struggled to get back online, traders trapped in shorts could only watch, helpless, as their positions were liquidated. Theories Abound After BTC Leaps While Bitmex is Down, bitcoin price,buy bitcoin,ethereum,crypto market,crypto news,bitcoin,altcoin,binance,bittrex,cryptocurrency news,btc,coinbase,investment,blockchain,cardano,litecoin,dash,ripple,what is bitcoin,bitcoin cash,bitcoin to usd,биткоин,localbitcoins,btc price,iota,monero,криптовалюта,cryptocurrency market,bitcoin usd,bitcoin stock,bitcoin kaufen,bitcoin investment,bitcoin trading,リップル,kryptowährung,btc markets,comprar bitcoins,bitcoin stock price,buy bitcoin with credit card,cryptocurrency exchange,cryptocurrency prices,bitcoin blockchain,bitcoins kaufen,btc value,bitcoin account,how to buy bitcoins,where to buy bitcoin,investing in cryptocurrency,bitcoin кошелек,buy cryptocurrency,buy litecoin,buy bitcoin online,buy bitcoin cash,new york coin,nyc,synergy,portfolio,stocks,bist100,nasdaq,stocks exchange,bovespa,nikkei,hang seng,shanghai,kospi,dow,s&p 500,dax,ftse 100,cac 40,ibex 35,nyse composite,nasdaq 100,s&p merval,s&p asx,atx,atx 5,bahrain all share,dse 30,dse broad,bel 20,adx general,ftse100,ftse 250,ftse 350,Brazil Index,Brazil Index 50,bse sofix,px,china a 50,s,SZSE Component,SSE 100,OMXC20,OMXC25,IDX Composite,FTSE Indonesia,FTSE CSE Morocco 15,BRVM 10,PSEi Composite,Al-Quds,OMX Helsinki 25,OMX Helsinki,CAC 40,CAC Mid 60,CAC Large 60,SBF 120,FTSE/JSE Top 40,KOSPI 50,KOSDAQ,KOSPI 100,KOSPI 200,BSE Sensex,Nifty 50,India VIX,S&P BSE-100,S&P BSE-200,S&P BSE-500,CROBEX,AEX,AMX,FTSE China 50,ISEQ Overall,IBEX 35,FTSE Latibex,IBEX Medium Cap,IBEX Small Cap,TA 35,TA 125,OMXS30,OMX Nordic 40,SMI,FTSE MIB,Nikkei 225,JPX-Nikkei 400,Topix 100,Topix 1000,Topix 500,S&P/TSX,S&P/TSX Equity,MNSE 10,MONEX,FTSE NASDAQ Qatar 10,KASE,Kenya NSE 20,COLCAP,COL20,COL General,DJ Latvia,DJ Lithuania,BLOM Stock,Budapest SE,Malaysia Top 100,FTSE Malaysia Mid 70,MSE,EGX 30,EGX 100,EGX 30 Capped,MNE Top 20,Semdex,NSX,NSE 30,NSE All Share,OSE Benchmark,Oslo OBX,OMX Oslo 20,Karachi 100,S&P Lima General,WIG,sWIG80,WIG20,PSI 20,BET,MOEX,MOEX 10,MOEX Blue Chip,Russian VIX,S&P CLX IPSA,S&P CLX IGPA,STI Index,Tadawul,SET 100,SET,Taiwan Weighted,TSEC Taiwan 50,Tunindex,crypto funds,use,kâr,endeks,altcoins,türk lirası,bitcoin profit,dolar tl çeviri,coinmarketcap,borsa istanbul,fon,bloomberg,yapı kredi,vakıfbank,grafik,türk hava yolları,pegasus hava yolları,bitcoin sv,bitcoin sv news,bitcoin 2019,bitcoin 2020,bitcoin 2021,bitcoin halving,ethereum halving,coinbase pro,stock portfolio management,best performing stocks,national stock exchange,aselsan,ekonomi,index fund,borsa yatırım fonu,kredi,profesyonel,warren buffett,morningstar,portfolio personal inversiones,bitcoin superstar,investimento bitcoin,bitcoin evolution,valor do bitcoin,valor do bitcoin hoje,preco do bitcoin,bitcoin a dolar,fund platform,earn money online,fidelity,how to earn money online,online investment platform,resesyon,criss,inflation,dow jones,stock market graph