The history of the Flash Crashes in BTC, how to make money on itI'll start this post with what I've earned on the covid flash crash myself. This success was repeated in May 2021 but in other token.
That's why I know a little about it.
At the end I wrote why next flash crash is possible
Bitcoin and other cryptocurrencies often experience flash crashes when there are sharp and significant price declines for a short period of time. These events can be triggered by a variety of factors, including market panics, big selling, news, or regulatory changes. Here are a few known instances of flash crashes in bitcoin history :
The flash crash On June 19, 2011, the price of bitcoin dropped from about $17.50 to just $0.01 on the low-volume Mt.Gox exchange. The reason for this flash crash was a huge sales order to sell 2,000 bitcoins at the market price.
Flash Crash On April 10, 2013, the price of bitcoin plummeted from about $260 to $45 in a short period of time. This followed a series of crashes on the Mt.Gox exchange and a number of other factors that caused panic among traders.
Flash crash On June 21, 2017, the price of bitcoin on some exchanges dropped from about $2,800 to $0.10 in just a few seconds. This was caused by a technical malfunction on the GDAX exchange that led to the execution of a bitcoin sell order at a low price.
Flash Crash On September 17, 2019, the price of bitcoin on the Bitstamp exchange plummeted from about $10,000 to $8,100 in a short period of time. The reason for this flash crash was a large sale order for 5,000 bitcoins on the exchange.
Flash crash in 2020: On March 12, 2020, the price of bitcoin dropped by about 50% in a few hours, falling from about $8,000 to $4,000. This flush crash was caused by market panic related to the global COVID-19 pandemic and its impact on financial markets.
Flash crash in 2020: On May 10, 2020, the price of bitcoin dropped more than 10% in just a few minutes. This happened after bitcoin sales orders worth about $30 million were executed on the BitMEX exchange.
Causes of Flash Crashes
-Flash crashes, or sharp and brief drops in asset prices in financial markets, can be caused by a variety of reasons. Some of the main causes of flash crashes include:
-Automated trading systems: The use of computer programs and algorithms to perform a large number of trades can lead to a situation where these systems start selling assets automatically in response to certain market conditions. This may lead to a spike in sales and a sharp drop in prices, resulting in a flash crash.
- Market Liquidity: Lack of liquidity in the market, that is, the inability to quickly buy or sell assets without a significant change in their price, can contribute to the occurrence of flash crashes. When large numbers of investors are trying to sell assets at the same time and there are not enough buyers, prices may decline sharply.
- Systemic Failures: Technical failures and errors in trading platforms or settlement systems may cause flash cracks. Incorrect orders or execution of trades, delays in transmitting information, or problems with transaction processing may create volatility in the market and provoke sharp drops in prices.
- Market Emotions and Panic: Heightened nervousness, emotional reactions, and panic among investors can also contribute to flash crashes. If a significant number of investors start selling assets en masse due to fear and anxiety, it can cause a spike in sales and a sharp drop in prices.
What were some inefficiencies in the market that could be exploited in the financial markets
There are several instances in the financial markets where inefficiencies could be detected and exploited for profit. Some of these cases include:
-Arbitrage between different markets: If assets are traded on different markets or exchanges at different prices, one could buy an asset at a lower price in one market and sell it at a higher price in another market, profiting from the difference in prices. This is known as arbitrage.
-Mispricing Companies: Sometimes investors may mispriced companies' stocks, creating opportunities to buy undervalued stocks or sell overvalued stocks. Such valuation mismatches can create opportunities for profits.
-Temporary Price Mismatches: Sometimes there are temporary asset price mismatches in financial markets caused by panic, emotion or unforeseen events. If an investor is able to identify such mismatches and take appropriate action, he or she may profit from their correction.
Explore the last point
Temporary price mismatches in financial markets occur when asset prices deviate from their fundamental value for a short period of time. This can be caused by various factors such as panic, traders' emotional reactions, unexpected news or errors in trading algorithms.
Temporary price mismatches present opportunities for traders or investors to capitalize on the difference between the current price and the fundamental value of an asset. Some examples of timing mismatches in prices include:
Inefficiency of crypto exchanges: There can be differences in asset prices on different trading platforms, especially during volatile market conditions. Traders can exploit these differences to buy an asset at a lower price on one platform and sell it at a higher price on another platform, making arbitrage profits.
Use of Algorithmic Trading: Algorithmic trading systems can cause timing mismatches in prices. For example, if an algorithmic system triggers a large number of sell orders in a short period of time, it may cause the price of an asset to go down. Traders may try to take advantage of such situations to profit by entering buy positions when prices decrease due to algorithmic selling.
This is due to the fact that players who want to make money on Funding/Countdown and their ideal market is a flat and when the market moves, they simply leave the market and wait for a less volatile market. This is why there is a liquidity crisis on some exchanges and there is a price overshoot.
All signs of a flash crash, signaling as much as I can:
1.The exchanges also believed in the latest surge in trading volumes and are now going full steam ahead.
2.The crowd is sitting in coinlist and seals with potential profits.
3.The crowd is playing or holding memcoins.
4.Crowd sits in altcoins, which is "still cheap" and already near December lowes
5.No new steibles are released - no one from the outside is interested in crypto, those who wanted have already bought it
6. Bankfallls
7.FEDnow release
8.The subcycle in the global cycle I mentioned in other posts
That's why I recommend to register at different exchanges, to study and test different trading terminals
Best regards EXCAVO
Flash
bitcoin flash crash is on the wayBTC has formed massive descending triangle and we are about to see a massive flash crash.
CPI report is also coming on 13 oct, so we need to wait for that report in order to take action. we also need to wait for breakout and retest.
a simple breakout could cause a quick flash crash. i am expecting $10k $btc by the end of this year although anything could happen i will be updating this idea on regular basis whether we are going to break upside or downside.
bearish scenario is most probable at this point.
OIL IS ON THE PROWL.. 🦊INTERESTING AREA... HOW MUCH PUSH DOWN WILL IT GET... CAN'T WAIT TO SEE THOSE MASSIVE LOWS AGAIN.
Trading oil during those times was a monster. Beautiful lows. Taught lessons never experienced before.
Now that free margin has been figured... swings won't aggitate as much with proper capital. These things happen in a #Flash out of nowhere... spreads are widened... then accounts are wiped out. Remember, usually more than once per year.
Utilize certain safety mechanisms just in case your order is skipped, a.k.a. gapped.
... time for rest. Chat later.
#25Sigma
#Flash
#OilBrent
Long🟢Ascending Triangle, Bull Power on SCUSDT (Bullish)Fuzzy AI computed extreme bullish power on Siacoin.
Neural pattern matching forecasts a positive future:
Ascending Triangle.
Linear Regression puts the Target Price above $0.025.
AI's flash pump bots already made 7.17 million $$$ just in october.
(Flash pump = reading DeFi liquidities & forerun pumps on CEX.)
SPX 500 : Correlation between stocks above EMA 200 and US500Just found this idea pretty interesting.
If Avarage of stocks Above EMA 200 falls under about 55/60% usually we have a great SP500 correction.
As always mostly of stocks are susceptible by some type of crisis : Real Estate Crisis, Governament Crisis, War Crisis, Epidemic Crisis.
Quite notable is the rebound to normality, it tooks about 2 periods (vertical bars) or 2.7years.
It start with a Big Drop on average of Stocks above EMA 200 and culminate with another BigDrop quite of the same entity.
SOME CONSIDERATION OVER AVARAGE STOCKS ABOVE 200
Another thing that can be take in consideration is the "average of average of Stock Above 200".
If we stay inside the 50-70% all seems to be quite stable, with a linear growth.
If we are above 70% there is imotivate FOMO, really risky. (Didn't you find quite impossible that 90% of stocks are performing great?? How much it will last?)
If we are below 50%-40% you should consider a SHORT POSITION almost everywhere. And if this happen, maybe, it will retouch the Crisis Starting point...than we can consider Crisis Period finished (maybe).
WHERE WE ARE NOW? WHAT WILL HAPPEN?
Seems we have quite surpassed the first period and so we officially enter in 2nd period.
Things that we must highlight
We are touching 50%, so we have 50% for a last rebound jump in 70% area (unlikely) and 50% for a BIG BIG DUMP
First period is just terminated. What will be in next period? Maybe a small rebounce until spring - fall 2022?
Will Sp500 keep his price or our direction is for 3200-2700$ on late December 2021?
LAST CONSIDERATION
Tapering, money printing, yield, Fomo, Fud, Oil Prices, Hurricanes, Epidemic disease, shortage problems : all those factor are contributing to a big volatily and uncertain.
This week could be crucial to stabilize prices, invert direction... but could be only a correction before the big correction.
Don't become emotional, calculate risk, be calm. Opportunity are always there like a treasure.
Bitcoin: Guess what happens nextI originally drew this arc months ago and it has been playing out nicely. But now, it's getting very near the edge. A lot of people are expecting a big (10k+) move in btc soon. But up or down? Down looks more likely to me in the short term. If I had to guess, it would be a flash-crash coming in the next 10 days or less, followed by new all-time highs in September.
EQZ | Flash Loans | Green DildØI'd say, wait n profit.
With some token release yesterday, now we're back to business.
Not a financial advice.
EQZ | Flash Loans | Strategic ReleaseWell, as some nice investors PM me, there's an idea.
I'll keep the investment strategy as Long (some guys told me that i only post LONG xD).
Targets to LONG:
4.5 - 5 w/ max 31 million marketcap;
8 - more w/ max 60m marketcap.
Stop:
As graph.
DYOR please.
Not a financial advice.
If you want to talk about (more), pm me.
EQZ | Flash Loans | Huge x7 possibilityEqualizer did a consecutive breakout and for most users gave them x3/4, but I believe that can give even more, something like x6/7 this month.
Reasons:
No more token release for more than 1 month;
Uniswap getting lower and lower amount available;
Announcements to be released this week, as said on Telegram (BIG);
Not listed on Binance yet;
Marketcap less than 20m (5m x ~3).
DYOR please.
I strongly recommend HOLD than trade on coins that are on begging, like this.
Not a financial advice.
GBPUSD: SELL/FADE CABLE ALGO SPIKE @ >1.45Unknown quantity just repriced GBPUSD right into my sell limit zone of 1.45-1.465 (see attached article).
Im recommending getting on the cheap risk NOW as FOMC and BREXIT REF can only price GU lower in the coming days/weeks - get it now whilst its cheap!
IMO there are 2 things it could have been 1. Algo/ flash buying 2. Some asia-lead Brexit poll that came back "no leave.
Either way both dont have much grounding.
HOWEVER
whatever it was MAY set us up for more GU buying today at some point so make sure you have more SELL LIMITS to take advantage of any further upside volatility that you can get some downside GBP risk cheaply!
SELL LIMITS @ 1.455, 1.460, 1.465, 1.469
S&P 500 selloff's becoming increasingly violentDespite what the VIX index may be telling you the image is clear that the sell offs are getting relatively harder and faster. As volatility cycles increase in amplitude and frequency we see an increasing amount of "one in a million years" events happening weekly. Between flash crashing, system bugs, pricing errors or whatever else it needs to be called liquidity is not there when its needed and its leaves firesales as the outcome.
I expect to see increasingly violent moves in the S&P 500 as the business cycle comes to an end. Whilst circuit breakers may be in place to 'physically' stop these sell offs, instead the pressure and desperation shall build and cause knock on effects elsewhere in other securities.