This week bitcoin broke up to upside, contrary to my forecast from last week. The virtual currency moved up +6%, topping off at $466 while global fiat financial markets suffered under turbulence.
Painting the Tape
Perhaps it was the Chinese propping up price, fleeing stocks, devaluation and capital controls. In markets, bear moves have been known to fail in bull markets and vice versa. But, volumes on OKCOIN are seemingly suspect, like this week.
“the charts were bearish. Momentum indicators were bearish, there was bear Divergence on Daily OBV, market structure was bearish”
OKCOIN registered 750k in volumes over 4 hours; a green breakout candle seen above. A closer look reveals 90% of this traded in a narrow range between 2800 CNY and 2830 CNY; an uncanny resemblance to front running trades, a highly illegal practice in regulated markets, involves the house fulfilling orders it own on both stacks of the order book. The objective is to give the impression of huge interest, while normal traders are locked out. How does