That theory doesn't make much sense, as if you buy back 500 bitcoin now it will take the price well beyond where he/she sold it for. I think its just someone who bought a lot in the 20's and now is taking profit. The 700btc dump took place at a similar level. Anyway, I'm hoping for some news on factom's birthday tomorrow....
They are selling a tremendous amount of coins to themselves on the way down.It's pretty simple really. Well, it's more complicated than this, but this is the basics of it.
1. How many coins (X) to dump the price to (Y).
2. How many of those buy orders are mine.
3. Difference between price to dump to (Y) and how many of those coins are mine is how many coins you expect to lose by dumping (A).
4. How many coins will be sold via stop order or panic that you can gobble up (Z).
If Z > A dump away.
This is all fine in theory but the last part, number 4, does not work anymore. No panic for him to capitalize this dump by buying more coins then he had prior to the dump. This tell us a lot what the market expects. We ll go over 6 and stay there by the end of this week. Maybe even 7.
I think you'd be surprised how many people set stops or over-extend themselves on margin.
So you imply you've had the chance to look at Poloniexs back-end? Please share your findings. That would be a traders holy grail.
per Factom...