The price of bitcoin fell this Saturday about 20%, reaching values of the beginning of October, after a purchase order manipulation, according to those published by various analysts.
From trading at USD 57,480 in the last 24 hours, the price of the main cryptocurrency fell to USD 45,235 in the early hours of this Saturday (UTC-4). At the time of this writing, bitcoin is trading at $ 47,303, representing a 17.7% decline in the last day, according to the CriptoNoticias price index.
According what was indicated This Saturday on Twitter by the analyst Willy Woo, in the last hours they had been introduced in large exchanges, mainly in Binance, important buy orders that encouraged a bullish sentiment in the market and that led to believe that there was a price support in these purchases .
Nevertheless, said orders would have been withdrawn before their execution, which means that the sales corresponding to the market price will not find the necessary buyers and the price will begin to fall. In addition, once the liquidations of long positions begin to take place due to the fall in price, these in turn cause a series of cascading sales.
“Today’s drop is courtesy, in part, by spoofers on Binance,” Willy Woo said in a tweet on Saturday, alluding to the cyber deception technique known as spoofing.
For his part, Twitter user @ MSquid92 explains what the spoofing technique consists of: «Large purchase orders at a price below the current trading price, create the illusion that there would be large purchases at that price if traded there , also known as a ‘false floor’ ».
According to Larry Cermak, vice president of research at The Block, liquidations occurred for USD 1.3 billion on this noticeable downward movement of bitcoin. The figure, according to Cermak, is considerably higher, as it indicates that exchanges such as Binance and Bybit are restricting data on settlements.
In the framework of the correction that bitcoin has registered since its most recent all-time high on November 10, there has been a closer coupling between the first cryptocurrency and traditional stocks and indices.
This week, the Standard & Poors, Dow Jones and Nasdaq indices closed the week in the red, in part due to fears of a resurgence in inflation and more restrictions around Covid-19, which had already affected the price of bitcoin. , as reported by CriptoNoticias.
The purchase opportunityIn the case of those who carry out this manipulation, it occurs when the price has dropped significantly. Bitcoin lost more than $ 10,000 today in just over an hour. The price of Ether, the cryptocurrency of Ethereum, shows a decrease of 13% in the last 24 hours and is trading, at the time of writing, at $ 3,977.