Trading cryptocurrencies can sometimes present a real surprise. Recently traders with Ethereum and Binance Coin has seen a surge of volatility on a local scale. While price spikes of digital assets was caused by just one player in the market who tried to close its huge trading position.
The elephant in the room
June 23, at about 02:54 Moscow time someone tried to sell 30 thousand ETH one order. Most likely, traders tried to close a huge long, which was opened earlier. As a result of his action for the next 40 minutes graph of bitcoin has taken a very interesting look. For such a short period of time, the value of Ethereum began to fluctuate in the range of three percent.
Often this phenomenon occurs when the execution of particularly large orders is simply not enough liquidity. In other words, the seller “threw” in the market are too many coins that are unable to “pick up” a sufficient number of buyers. Summary — problems with maintaining an adequate spread in the auction.
Looks like someone is trying very hard to get rid of your Ethereum on Coinbase without having to worry about liquidity. I haven’t seen one. Selling coins on the market with every second empty glass — not the best idea.
Looks like someone is trying really really hard to get out of ETH on Coinbase and doesn’t care about slippage at all.
Haven’t seen this in a while.
Market selling emptying the book every few seconds seems like a bad way to go about it. pic.twitter.com/AeB1TgOJKK
— DonAlt (@CryptoDonAlt) June 23, 2019
Something similar could be seen on the chart Binance Coin. The situation was even worse — the coin value ranged from 8.35 percent in a very short period of time of approximately one hour. However, in this case, the asset’s price jump in both directions.
Currently BNB is trading at the level of 36.34 USD. After a sharp volatile price movements of the cryptocurrency stabilized. Now its capitalization is of 5.12 billion dollars, and trade volume is fixed at level of 342 million dollars.
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