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Another victim of the dreaded FAT FINGER??!! A potential signal to dip our toe back in the alt market?
Or just an impatient whale with no cares for price?
Time for a thread...
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Or just an impatient whale with no cares for price?
Time for a thread...
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In the hour following the end of October, someone, somewhere, market-bought a large quantity of $ATOM/USD on Coinbase, causing an 11% spike in price.
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The wicks they left behind tell a story. Was it a story of impatience? Insider knowledge? API’s gone awry or was it just a drunken “fat finger” on the full-moon Halloween.
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ATOM broke out early in the summer and rallied to an all-time high of nearly $9.00 on August 23rd. It has been in decline ever since, consolidating between $4-$6 during the alt market hangover, after a summer of exuberance.
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Price has fallen to what many would consider a buy zone after confirming bullish market structure again on Oct 11th.
The location of this large purchase is therefore not that surprising as much as perhaps, the execution and timing of it.
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The location of this large purchase is therefore not that surprising as much as perhaps, the execution and timing of it.
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While Bitcoin has rallied 25%, the majority of altcoins have gotten hammered, and $ATOM did not escape the sell off. Many believe it is a matter of when alts will bounce furiously, not if.
Is this one of the signs we’ve been waiting for?
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Is this one of the signs we’ve been waiting for?
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There are a few possibilities:
Insider knowledge - Wicks like this (up or down) can often precede news driven FA. If that’s the case, we’re likely to see more evidence on the chart in the coming days as more phantom wicks + volume appear in the same direction.
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Insider knowledge - Wicks like this (up or down) can often precede news driven FA. If that’s the case, we’re likely to see more evidence on the chart in the coming days as more phantom wicks + volume appear in the same direction.
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Impatience - Many market participants, even those trading with size, simply want their coin NOW and they don’t care to wait around for their limit orders to fill. In this case, the individual paid as much as a 10% premium to bypass the waiting game.
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Investment API’s - Some use 3-party platforms to manage their crypto and simply slide the % amount of an asset they’d like to have in their portfolio upwards or downwards, causing an API market buy/sell order to execute with no consideration for the liquidity in the books.
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Altcoins have taken a beating in recent weeks. Could sudden pops like this, also observed on Coinbase’s $OMG pair at almost the exact same time be hints of something more? Perhaps the first rumblings of a counter trend rally to take place through November?
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#Bitcoin 
dominance just tagged an important resistance level, just as $BTCUSD price has come into a key resistance area. It would make sense to see a bounce in #altcoins here if the King ranges for a week.
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dominance just tagged an important resistance level, just as $BTCUSD price has come into a key resistance area. It would make sense to see a bounce in #altcoins here if the King ranges for a week./11
Factor in this HTF support/resistance level on $ETHBTC and you can see the case for a market wide #altcoin bounce growing stronger still.
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It’s impossible to know the full story of the phantom ATOM buys, but it leaves us with a plan for election week:
- Look for similar buys on other mid-majors
- Keep a close eye on ATOM + OMG volume
- Hunt the dips
Many signs point to a bounce week ahead
- Look for similar buys on other mid-majors
- Keep a close eye on ATOM + OMG volume
- Hunt the dips
Many signs point to a bounce week ahead
