Bitcoin Thread

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Yeah there's a Tether issue so people are selling Tether for BTC on Bitfinex. It did help the other exchanges break a bit higher though so it will likely kickstart further moves up in the coming days. I will hold my BTC.

I'll also switch to using Bitstamp for TA. Bitfinex can no longer be used to provide the full market picture with Tether value changing significantly.
 
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Not great when you're using Tether and wake up to find it's supposed fixed dollar value has taken a hit. Be interesting to see what happened - haven't had much chance to go dig around yet. Any news / info on what happened?
 
Nevermind.
Alex Kruger, a respected market analyst, acknowledged this questionable market behavior, taking to Twitter to convey his thoughts on the situation. Kruger first highlighted the price disparity between Coinbase and Bitfinex, which reportedly holds close ties to the Tether Foundation.

At one point, as pointed out by the analyst, the price spread between the value of Ethereum on Bitfinex and Coinbase surpassed 10%, which is nearly unheard of in the nascent crypto market.

Rationalizing this unreasonable spread, Kruger quickly pointed a finger at Tether, as the supposed stablecoin fell under $0.96, while crypto assets rose across the board. This, of course, indicates that traders believe that Tether may not have the USD reserves to back all USDT in circulation, resulting in a capital flight from the stablecoin to traditional crypto assets.
https://www.newsbtc.com/2018/10/15/...o-achieve-7500-crypto-market-adds-20-billion/
Click to expand...

But faith in Tether abruptly diminished on Monday amid renewed speculation over the financial health and banking relationships of Bitfinex, a crypto exchange that shares a chief executive officer with Tether’s issuer.

Similar rumors earlier this month prompted Bitfinex to issue a statement last week denying allegations that it was insolvent. In a Medium post after several hours of market turbulence on Monday, Bitfinex said that withdrawals from the exchange were being processed as usual even though fiat-currency deposits had been paused for some users. That appeared to calm markets somewhat, with Tether paring some of its losses and Bitcoin giving up some gains.
https://www.bloomberg.com/news/arti...derpins-20-of-crypto-trades-is-under-pressure
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I'm still curious to know what sparked off the price decrease in Tether & where this 'lack of faith in Tether' all of a sudden appeared from. Sounds more like market manipulation.



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saor said:
Can you maybe share a bit more info? Or at least a link or something to what happened? FUD by who, about what etc.
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The uncertainty over tether was started by many millions of $ in tether being sent out of Bitfinex, then Bitfinex stopping fiat deposits, KuCoin stopping all tether withdrawals, and fake news about Binance preparing to delist tether pairs.

Bitfinex and Binance have both made statements to clarify what's going on and quash the FUD.

https://medium.com/bitfinex/fiat-deposit-update-october-15th-2018-18ddd276c3fd
 
The Bitfinex issue has been going on for a week at least. The BTC premium on there steadily grew from $30 and week ago to $150 yesterday before exploding today. People in the know were slowly converting their Tether to BTC.

Not sure how this will affect the entire BTC market. The other exchanges did not explode but did go up. Though why would people buy BTC on Bitfinex at premium prices today.

It seems that it was difficult to withdraw your cash from Bitfinex recently. So my theory is that people want to either cash out or hold long term. Those who want to cash out will transfer BTC from Bitfinex to another exchange and possibly hold the price down by selling or even cause a dump. Hard to say which is going to be dominant. Bitstamp seems to have recovered from the selling earlier though. So that's a good sign for more up at least.
 
Switching to Bitstamp this is what the picture looks like. There's resistance just above but it should be a bit weaker now. Price seems to be holding for now.

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Edit: Zoomed in picture. I would only get concerned about holding if the price drops below $6340 (on Bitstamp). More likely to go up from here I think. Above $6340 is a buy zone, not sell zone.

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Hxx said:
Why does the Luno price stay so low?
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Few reasons:
- First round of people taking profit after weeks of sideways. Main reason right now (and also on other exchanges). Eventually sellers supply will run low and we will start to creep up again.
- Seems to be following USD exchanges which are only up around $250. Not Tether ones like Bitfinex.
- Rand is stronger slightly today vs the Dollar which is dampening the Luno move.


I think it's ok to hold for now. These pumps often start out this way with initial selling. April was similar for example. I was one of those that sold early back then but the price just kept going up afterwards.
 
Yeah Luno was a bit slow with the dump as well. I could have made more if I waited an hour or so. Not making the same mistake as there's really no point in selling now.
 
Yeah support zone is holding for now. No need to sell or panic just yet. We won't get rich by taking 3% profit and missing out on the 10% pump the next day. Happened a few times to me at the start of the year where I sold too early after the move up started. Right now you have plenty of people who have sold in all exchanges and are waiting for the price to drop to get back in.

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Bitfinex just dropped below $6830. Not a great sign as that was a key level there. The other exchanges are still ok for now but if Bitfinex falls a few hundred dollars I think they might follow too. If Bitstamp and Coinbase drop below $6340 and don't bounce back higher immediately it will be tough for the price to climb again. I've gone half into cash for now.


Edit: There's Bitfinex, still slipping. There's many areas it can bounce from. Not sure what will happen with all the Tether FUD. People are selling but also don't want Tether.

Bitfinex:

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There's plenty of places it can bounce from. Just the whole Tether FUD makes things very unpredictable. The other exchanges are barely reacting to Bitfinex movements now.

Bitstamp still looks ok. Barely any move down now:

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So Bitfinex is trying to push again and stay above $6830. At the same time Bitstamp/Coinbase is also pushing upwards, all just above key levels. If they all drop from here below the supports that just broke, then I think we will go down a lot more before going up as the attempt to break up would be a fail.

Bitfinex must stay above $6830:

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Bitstamp is pushing against resistance but has some room to fall before throwing in the towel. Dropping below $6440 would be a first bad sign but not the end of the world:

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Edit: The Bitstamp move got rejected. Both at the diagonal downtrend and the fib just below. Have to see what happens if/when it gets back to $6440.

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I'm fully in cash again. The Rand also just keeps getting stronger. It's like a knife in your side when trading on Luno. Bitfinex is also slipping below supports. A good area to bounce from would have been $6760 but that failed.

WZErKZFy
 
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Seems like it's been rejected again from the fib level at $6468. I was ready to click buy on Luno if Bitstamp broke above to at least $6480. Didn't happen so no buy. Might still bounce from $6440 but it's looking weak.

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Action on Luno has been interesting today. The price was held up by big buy orders the whole day. Probably people coming in again after long time following yesterday mornings pump and expecting a new bullish wave up. Also possibly some fresh money being loaded and taking a day to get on the exchange so they could only buy today.

I've thought about buying a few times but the USD exchanges aren't really doing much yet. The Rand also strengthened over 1% again, now two days in a row. So after this initial buy frenzy phase on Luno I think the price might slip a bit if the USD exchanges continue to drift sideways/down.
 
Interesting that price has broken out of that long-term wedge. Feels like an odd position to be in right now & it's tricky gauging market sentiment. There's a nagging feeling that the lows this year weren't low enough - that we might see some upside before taking a quick and heavy dip down again. Interesting times. Gonna be fun watching this play out over the next few months.

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Luno's indecisive. The price should and would have rocketed past R100k at any other time but for some reason there's a constant barrage of small sell orders cancelling out the buyers. Quite strange considering the Rand is also just peddling along on luck. There's bound to be another knock in the next week if not from Trump then from the ANC.
 
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