The thing is... the market always levels out at the median of the peak you've created.
For instance: if the price is $12.50 and you drive it up to $13.50, (12.50 + 13.50)/2 = $13.00 is where the price will land.
Sure you can sell everything you bought from $12.50 to $13.00 as profit, but you lost money on everything from $13.00 to $13.50. So it cancels out.
Topic: How to manipulate the market (Read 1448 times)
I sold half at $14.25 when this happened.
Its only free money if it actually sparks a sell-off.
Otherwise, the market holds.
The seller sees this and changes the bet. Removes the ask and buys back higher. Big buys in a thin market can start a rally, and panic buying.
Otherwise, the market holds.
The seller sees this and changes the bet. Removes the ask and buys back higher. Big buys in a thin market can start a rally, and panic buying.
I bought in too high shortly before this recent drop. Thus... I found it annoying.
If you actually know this is going on it is free money for you, how is that annoying?
Yeah, I just spotted that too. Watched it happen live and came to same conclusion as you. Damn annoying.
Step 1: Have a lot of USD and a lot of BTC - market price at $13.90
Step 2: Place an ask order for $150k BTC at $14.25 - build an ask wall
Step 3: Sell $100k worth of BTC - break the bid wall
Step 4: Hope for a sell-off
Step 5: buy them back cheaper!
Pretty clear there's some big players now (as opposed to the early days). It now takes $100k to move the market (used to take $10k).
When the market is bearish and thin, its easier to manipulate down (spark panic selling). When the market is thin and bullish, easier to manipulate up (spark panic buying).
Step 2: Place an ask order for $150k BTC at $14.25 - build an ask wall
Step 3: Sell $100k worth of BTC - break the bid wall
Step 4: Hope for a sell-off
Step 5: buy them back cheaper!
Pretty clear there's some big players now (as opposed to the early days). It now takes $100k to move the market (used to take $10k).
When the market is bearish and thin, its easier to manipulate down (spark panic selling). When the market is thin and bullish, easier to manipulate up (spark panic buying).
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