Topic: Bitcoin price manipulation patterns (Read 523 times)

Yes,while trying to dump our coins,if we sell all our coins at once,it would create a quick fall in price and then we will not be getting fair price.So,they would try to dump their coins gradually and by this way,their job would be done easily.

Earlier,manipulation was more when chinese dominated the market.Then it was said that since bitcoin has huge marketcap now and users widely spread all over the world,there would be no manipulation.

But now with big financial firms entering bitcoin market by launching bitcoin futures,it seems once again manipulation is done.

I definitely think there is a group of people that are manipulating BTC price and even the media. It's already getting hyped up in the media that it could grow the same or more in 18 as it did in 2017 and hit a Trillion dollar market cap as a whole. It's whatever though. I've yet to loose a dime hodling. I'm still in the green on my overall investment right now.

Asides from underestimating the amount of coins some of these whales own, it is bad underestimating the level at which they can go with manipulations to get a whole lot of profit. We cannot play against them and the only thing we can do is to react with the market and think like them. They read charts like they are reading human emotions, and they have always known how to play this perfectly well.

Manipulator is not one, not even two, but they call them institutions. Group of whales who derive pleasure in manipulations for their own profit and then play their game on weak hands while the swim in a lot of money later on. It is obvious and only few can really know that.

Good stuff that you have written though and this should throw some light to some people on why they really do not need to panic in this kind of time.

At last! Someone can see what I see - thank god for this thread. Does anyone else see the organic growth stop around $6k on the way up? May be $6k IS the organic floor? Another point. is it feasible for people/institutions with very deep pockets to start buying as much BTC as possible thus driving the price up prior to Christmas only to then sell en masse, bringing the price down, ensuring futures contracts execute and keeping the BTC price within a certain range? Or is this too simplistic?

I'm the OP, lol. Truth be told, I've been following the price for pretty long. Should I say that I'm kinda day-trader? It was a gradual process which brought the prices down so much without even a chance of a slightest pullback. This was the most frightening thing in the whole business. Believe me I can tell the difference between someone steadily pressing prices down and organic decline or even organic crash, where you can catch pullbacks and reversals every now and then. It was like a smart trader slowly but surely closing a huge position.

That your last statement in fact caps it all. These are the same guys who have been in the wall street, so a new market like this with a lot emotional investors and traders is like a pretty gold platform for them to play on. They have been good at manipulations, they have the resources, they are psychologically sound and know how to input that knowledge on charts and they gladly do their thing until they are good enough like you said to buy back for long or until they see that the bears are worn out.

You think this decline started happening two days ago ?
You need to take a look at the 1 day chart and start counting the candles from when it started showing red, may be you will understand that this started a long time ago.

Just like the OP said, it is always a gradual process, they are whales, they know what they are doing, they come together and then play with emotions of traders to make a pretty good gain from it. Unfortunately, we have a lot of weak hands and traders in crypto, so that makes it even better for them.

That's why it doesn't make sense to close your position at once. It would make sense sell slowly giving people time to rush to buy what they think low. You can even try to tempt them into a bull trap when they think the plunge is over. Then you start selling again.


You would be surprised. Here's an example of someone who has over 167,000 BTC in his wallet sending thousands of bitcoins to Bittrex account some time ago:

3,000 and 4000 bitcoins sent 5 days ago (transaction 8d8bdbb42f6e40370e317587734c0aa7adfbf2a5fece88f8adaee3ed6659ad3d and transaction a6bd36443feca2554f59c5db0fc1a8e27a52540d0b2207a162a6c8883ce92991)

5,000 bitcoins sent today (transaction 6048aaab45e9e2e5c66b2b2cde78205cb81269eb00c4a996b61b424c87448c72)

The Bitcoin address 1N52wHoVR79PMDishab2XmRHsbekCdGquK belongs to Bittrex. I can't even imagine what price would look like if all 167,000 bitcoins got dumped at once.

I don't think that the 20K pump was made by the whales. They don't have that much power, however a price dip may be caused by them. The 20K pump was likely made by the sudden surge of buyers when bitcoin became mainstream all of a sudden. Now that most of those buyers are now exiting, the price is going down. Whales are really influential and powerful, yes, but there are still many external factors which affects the price greatly and this is not in the hands of others.

IMO the price of bitcoin strongly reacted to governments move to regulate crypto exchanges. Per observation, it started to go down when South Korean government is planning to ban crypto, then followed by hacking and Tether incident. If there could be a manipulator then he should have paid a substantial amount of money to governments to crack down on cryptos in order to create FUD then panic sell. Just my two-cents thought.

Price Manipulation in the Bitcoin Ecosystem

the problems here is there are pump and dump groups and also other similar groups to take advantage to buy and sell bitcoin.when bitcoin was pump to 20K obviously this is act by some groups of peoples.maybe they give the target to dump at 20K and of course most of peoples with trading experiences know this is the time to sell their bitcoin.they sell and cash out the money.what they do next is to wait until bitcoin drop to lowest price so they can buy back.and FUD is also playing with BTC price.

I don't think it is possible for a small group of individual to be able to manipulate a coin as big as bitcoin. This must be a huge group of influential and financially capable individuals. I am not fully aware of the whale stuff, can anyone enlighten me about this thing?

Here's the wallet address of the Gate.io exchange:
https://etherscan.io/address/0x05ee546c1a62f90d7acbffd6d846c9c54c7cf94c

Here's the wallet address of the Binance exchange holding ether tokens:
https://etherscan.io/address/0x3f5ce5fbfe3e9af3971dd833d26ba9b5c936f0be#tokentxns

Here's the wallet address of the KuCoin exchange holding ether tokens:
https://etherscan.io/address/0x2b5634c42055806a59e9107ed44d43c426e58258

Here's the wallet address (4) of the Bitfinex exchange holding ether tokens:
https://etherscan.io/address/0x876eabf441b2ee5b5b0554fd502a8e0600950cfa#tokentxns

Pick a popular token, and try to find a wallet address that acts as an intermediate between the exchanges. It isn't that difficult, it's happening right now, try to find a pattern.

on Gate.io operates a trading bot that exchanges large volumes of tokens cross exchange by using intermediate wallet addresses on the Ethereum blockchain. A few days ago it became clear that the bot is trading to Binance (among other exchanges) and uses several user accounts there. Deposits/withdrawals are made by several different Ethereum wallet addresses each time, and those addresses doing deposits/withdrawals not exceeding <10000, with now and then an exception with a massive withdrawal. See below for an example of the "intermediate" wallet address used by the bot, of both cases mentioned earlier:

https://etherscan.io/token/Quantstamp?a=0xa8fb3501575c7c2b1ba0eacf96c62a0fe1338a5c

Here's another that's been active earlier today:

https://etherscan.io/address/0x77cdc9a4f33f8cf2392a651553519923ef23808a#tokentxns

I'm compiling a list at the moment of the wallets I've been able to track so far, and will open a topic later today listing them. There are so many addresses involved, some used a single time, some used at a daily basis, that I will probably miss most of them. Still, there are many, and it is not only improbable for a human to act like this, it is also highly unlikely. Connect that to the screenshots I made of the QSP order book, trade history and charts at Gate.io. (just a fraction of the total, I tried to log the order book of Gate.io during one day, and fell asleep at some point). And this goes for loads of other tokens as well, especially those which are popular (BAT, REQ, JNT, TNC, EOS, KyberNetwork, OMG...)

Link to screenshot album here: https://imgur.com/a/jbM45 (chronological order is from bottom to top).

Alll screenshots, atm >300, include a digital datestamp and will be uploaded as soon as I've sorted it a bit.

This is quite interesting.  I have been thinking about it.   There is manipulation but how much isn't clear.  I read whales put in orders to buy/sell then don't follow them through so that makes an impact.  But if the price goes low will people rush to buy or wait till the price goes lower still.  That's the question.  I was myself thinking there will be a big crash later today or tonight and then it will be black Monday.  Even if that doesn't happen I think a climb back will be very very slow.  And no rocketing prices. 

There is no good news. Therefore there will be no driving force for the bulls. Any increase in price with low volume is definitely manipulation only.

It appears that whoever is bringing the price down definitely knows what he is doing. After the selling pressure got removed for some time, the price bounced back a little and more liquidity entered the market. And when people started to think it was over, the pressure resumed. And we are now almost $2000 below where we were just two days ago. It was a classic though minor bull trap. Is there any better way to strip people off their money?

^^ we actually have a somewhat similar example for this. not exactly a whale closing position but a sudden drop in price. on 2017-4-15 bitcoin price was $1170 but it fell down to $0.06 on coinbase. there was a big freak out but the amount of buy orders which were placed was so big that it filled the orderbook right up to $1170 again.

I'd be happy to hear the reasons why you think a whale would want to close his position instantly. If we are talking about a really big whale, then trying to close his position at once would just eat away all liquidity from the market. On the other hand, if he closes it slowly and gradually, he will be better off because traders won't be scared away by a sudden price crash. As I said in OP, many traders would start adding liquidity to the orderbooks, thinking of the price decline as a good buying opportunity.

Also, if it had been because of some negative news hitting the wires as some suggested here, the price would have moved chaotically. But it was a steady and persistent decline, which clearly shows that it was a deliberate and likely concerted effort.

This is a very good reply. short term trend is exacerbated by day traders trend following signals.

Bitfinex is a shady exchange, so it wouldn't surprise me if they actually are manipulating the market as stated. One sure thing is that even in current times, certain entities are playing around with massive buy orders that they pull back very quickly. The largest order I have seen this week was a very short lasting buy wall of nearly 2000 BTC at +$10k levels. Not directly saying that it's Bitfinex itself, but one has to be very stupid to trust Bitfinex what that much value. It's the largest exchange based on their USD, or better said USDT volume, but they don't allow any US registrants.... Good thing however is that the market is more looking at GDAX when it comes the direction, and not so much Bitfinex anymore.

There was a good article by Bitfinexed in Medium that pointed out how Bitfinex manipulate the price with fake buy\sell orders. Very good article and solid analysis, if you're interested you can google it easily...

I think the whales could be quite cunning more like foxes than whales.  They will lure people in because the price will be creeping up so people invest their savings and then when everyone least expects it the whales will come along and take all the profits and more.  Like a fox in a hen house.  I think people should beware. 

I agree with the point you have made but my most worry is people sell their coins because of the activities of the same whales.  If you look at what is happening you will find out that bitcoin, ethereum and most of the popular cryptocurrency were falling at the same rate and this is what I have seeing and notice that Some very big investors were closing their position in all the coins and since price is now down very soon they are going to start to buy again.

If a whale decides to close his position, he'd do it instantly and wouldn't sell off in increasing increments as to what we have witnessed here. Honestly I think that the recent huge crash is intentionally aligned with the bad news reported by media regarding South Korea and India's stance against cryptocurrencies. Or it could have been a correction for bitcoin to reach its supposed "true value" before the FOMO kicked in on the last weeks of November. There are endless possibilities; a correction from $15k++ is a must and we all know that it couldn't hold for too long considering how fast it came in there.

Don't you think it's possible to manipulate the price even if you own 0BTC Using mainstream media and to keep bashing Bitcoin to say how it's bad and help criminals and so on? And when you want to make the price wake up, you say "good news! Bitcoin is now accepted in this and that" or any positive news, you get my idea. A lot of media are controlled by the same holdings, of course, you need a lot of power but it's still not impossible when you have the resources.

There is no manipulator (though there was back in 2013, with the willy-bot).

The market cap of bitcoin is now just too large, which means there are too many actors and the money you need to crush all those actors would run to the billions.

I think people need to take a deep breath. The price this time last year was about $1000. Bitcoin is still above the support line from 2017 (draw a line through all the lows and you see a rising slope), and it's at teh price it was last November. The December price was not real, it was caused by a bunch of noobs fomo buying and the line went up vertically. When that happens, it always corrects to where it should have been - which is around the $7,500 to $9000 level.

Not really common knowledge - there were actually times last year when altcoins rose as Bitcoin declined, usually in short spurts. To my understanding this can be rationally explained when people buy up alts with Bitcoin (BTC pairs are, after all, still the most common trading pair with most alts and the easiest way for people to buy alts without a fiat deposit). In other words, this is a form of shorting Bitcoin (selling it to buy alts). Of course, as January and early February has shown, the entire crypto market is pretty much reliant on Bitcoin's health in the long term.

And that knowledge - that if Bitcoin as the most recognised, accepted and legitimate cryptocurrency fails, so does the rest of crypto - should still be the prevailing common sense of whales who surely built their digital wealth from Bitcoin. There may certainly not be a tomorrow, but the whales would want that event to be as far forward into the future as possible. That's my conjecture.

It wasn't not a single-stroke, one fell move. I watched the price go down for two days, and it didn't look like a flash crash by any means. This is the point which I want to emphasize once again. It looked like a deliberate attempt to move the prices down in a consistent and gradual, even frightening manner, allowing more traders to enter the Buy side of the orderbook and then relentlessly eating their orders. It was a very well thought-out scheme, not some frantic effort to close a position at any costs, which is what most flash crashes can be traced to. That's the main reason why I started this thread.


I see your point but you may miss a few other factors that may be in operation here. For example, it is sort of common knowledge that when Bitcoin price falls, most altcoins fall even harder, and harder may be a serious underestimation here. So what if would-be manipulators are really trying to move their financial capital from Bitcoin to some other coin like Ethereum or Litecoin? I think in this case they wouldn't care if Bitcoin dies in the process as long as the coin of their choice survives. Also, given the general negative attitude toward Bitcoin recently revealed by the powers that be, it may in fact be worth earning a few billions today because there might not tomorrow at all. What do you think?

As Bonsaiv points out, this single-stroke, one fell move, would never have the intended effect, if in fact the manipulation were to happen that way. It might result in a momentary flash crash, but then prices would restabilise pretty quickly. Single entities have been discussed of course, with some compelling evidence, especially by this guy from Hackernoon: hackernoon.com/meet-spoofy-how-a-single-entity-dominates-the-price-of-bitcoin-39c711d28eb4 and his other articles.

Spoofy may not be real, but the narrative is interesting and not entirely unscientific (otherwise ignoring the choice of language).

Think about this though, these would-be manipulators would surely not want to kill their golden goose. Even if they brought the price down, it would only be for them to re-enter into long positions. Why make a few billion today when you could be making hundreds of millions for many tomorrows?

Of course, releasing a one stroke only carries 1 decrease 'which is not meaningfull', and the impact of a decline that occurs just a few moments.


What you are saying is true, they are a group 'large whales' who have 40% btc, by the way they are united they are able to push the lower level btc price though.

I wouldn't call this decline slow, slow is over weeks but not like today and yesterday. If it wasn't a single manipulator or big whale cashing out, why are the prices going down in this manner? It looks like someone intentionally and deliberately keeps the rate constant to bring it to a point when people think it's over and freak out mindlessly selling their coins. That's what I mean by artificially bringing the prices down to instigate an avalanche-like panic selling. When the prices start crashing on their own.

There are several big holders (e.g. the Winklevoss twins) who own a 5-digit or
even a 6-digit amount of BTC. They could completely wipe out the market with
a few huge market sells. Even 5000-1000 BTC would be enough to wipe
out the order book on most exchanges.

You seriously underestimate the amount of coins that some BTC whales actually
own.

There`s no single manipulator,who is rich and powerfull enough to push the prices down.
There should be a group of big crypto whales and they sell together,forcing the price to go down.When the prices go down,all the small traders start to follow the trend,and eventually the market is manipulated.
Slow and steady decline means small panic.Fast and rapid price crash means big panic.Both scenarios can be created by manipulators.
What do you mean by "artificially bring the prices down to cause panic selling"?

These are my observations so take them with a grain of salt, but I've seen the patterns described below at two markets which are not connected, so there may be some truth in what I think. These are crypto and currency markets, specifically. What I noticed can be summed up as follows.

If you are a manipulator, you are not interested in crushing the price at one stroke. You would rather be interested in a steady decline. First of all, it gives traders time to react and place their orders to buy at what they think low price, that is build support at still relatively high price levels. Second, when you eventually crush this support, you can press prices a little further since there will be less support at lower prices. And third, letting people buy at higher prices will likely make them panic sell at lower prices later, so all-in-all you may achieve better results this way than if you chose to bring the market down in one sweeping blow and then had to face plenty of resistance at lower levels when a lot of support builds up there. The same approach should work perfectly if you are a big whale and want to cash out. It doesn't make sense to dump all your coins at once because that would scare the hell out of everybody and you won't get decent price on your coins.

The bottom line is that if you see prices decline in a steady, intimidating manner with no major rebounds as it happens these days, it is likely someone trying to artificially bring the prices down to cause a panic selloff. Another option is a shrewd whale closing his massive Bitcoin position.