Yesterday afternoon, at exactly 6:00 pm UTC (3:00 pm EDT), an unknown whale on the Exchange Coinbase executed a large sell order in the market, causing the Bitcoin price to temporarily drop to $61,000 in a flash crash.
The sell-to-market order, which presented itself as a large red wick spanning the $62,500 to $61,000 range, could be considered an example of a “cheat wick”, the Flash Crash – that is, a large market order designed to trigger a cascade of stop losses.
Scam mechanisms can be used to instigate a change in the moment, causing the price to fall or rise as buy or sell orders (respectively) are triggered, adding more fuel to the candle.
Depending on the number of orders in the book, it takes at least one multi-million dollar market trade to trigger the remaining orders on the major exchanges.
However, in this case, the sell order was received with great support at the $60,000 threshold and triggered a buying rush – pushing the price back to $62,500 minutes later, before seeing it break $63,300 just two hours later. later.
A failed attempt
In total, a whopping 246 Bitcoin (worth approximately $15 million) was paid off in the space of one minute.
The event spread to other major exchanges, including Binance and Kraken, which saw Bitcoin devalue to close to $61,000 before recovering just as quickly. Those with scheduled limit purchases made a healthy profit when Bitcoin hit the approximate value of $63,300.
Given that the $60,000 limit was violently defended by bulls, this paints it as a key area of support in the future.