When I distill down October 10th, I get to this...
Binance broke ( the worlds largest exchange). The API's shut down for market makers. Everyone got liquidated. Most market makers were not able to backstop liquidity. It spread across exchanges.
Those exchanges that have their own market makers or the ability to backstop prices probably absorbed a huge amount of liquidation in small caps and majors. Someone had to step in.
The equity Flash Crash in 2010 was similar.
That inventory, much like on a large market making desk, or program trading desk in equitie has to be unwound to reduce the extra risk they took on.
There has been 10's of billions of backstop liquidity to unwind. Some at huge losses, some at amazing profits.
It is not market manipulation.
If there was any, it was in the backstopping of prices when market makers couldn't due to technical issues...
This is what we are seeing today, in my mind. Those that backstopped the liquidity need to de-risk. In program trading we would see the same... every day liquidations to average out over time and reduce impact as much as possible.
Things are not liquidity right now so it has a large impact.
Year end audits and market liquidity constraints around year end mean that a lot needs to get finished now.
This too shall pass.
#BTC
Bear Markets confirm when the bullish structures that supported continued bullish momentum start to fail
There's a high probability the Weekly Candle Closes below the 50-week EMA and so the price reaction that follows over the next couple of weeks or so will be macro trend-defining
The question at this point is - can BTC produce enough upside in the coming weeks to invalidate this Weekly Close below the 50 EMA and reclaim the EMA as support?
$BTC #Crypto #Bitcoin