Want to Trade Bitcoin? ForexNews RecommmendsClick Here To Learn More.
Bitcoin flashed crashed on the BTC-E platform, falling close to 30 percent before recovering completely. The crash happened on a large sell order for several thousand coins. It’s unclear why the owner decided to dump the entire lot on the open market. The usual rumors are abound, ranging from a bug to a hacked account or a fat finger mistake. The exchange hasn’t published any news about the event so I assume they’re treating it as legitimate trading.
The crash started at 13:45 server time (6:45 EST) and by 13:46 prices had traded to a low of $194.92. The recovery was equally as vicious with BTC/USD back to $260 dollars per coin by 13:48. Other exchanges didn’t participate in the event and stayed stable during the entire ordeal. Bitcoin traded flat for the rest of the day on BTC-E and is currently quoted at $267.60 dollars.
The crash may be a result of weak liquidity during the summer dull-drums. The last time a flash-crash of this magnitude happened on BTC-E was also in the summer last year. On August 18th 2014 prices crashed over $130 dollars, from $467 to a low of $334. You can read more about this event HERE.
While bitcoin stayed stable on other exchanges, the crash should worry the bears. In our yesterday article we cautioned that ”the constant pushing on the support at $270 dollars is not good for the bullish scenario. With each test, the odds increase that we will get a break below. And if $270 goes, the swing low at $260 dollars won’t be far behind”.
The flash-crash clearly demonstrates that the path of least resistance
Originally appeared at: http://www.forexnews.com/blog/2015/07/19/bitcoin-flash-crashes-on-btc-e-other-exchanges-stable/