Bitcoin forecast: Bitfinex Wal expects a strong correction
A Bitcoin whale on Bitfinex, who as Joe 007 has been identified since the 9th 000 he region consistently demanded a steep correction in the market. He explained that the current bull market has been severely manipulated by other whales and that withdrawal is inevitable.
Profitable for six months in a row
According to crypto trader Jacob Canfield, Joe was 007 six months in a row from August 2019 to January 2020 profitable. On average, the dealer recorded a monthly profit of 6, 52 million dollars.
Throughout February Joe 007 the Bitcoin rally from the 9th 000 $ on 10. 500 $ consistently as a case of manipulation in the form of spoof orders described. In margin trading, spoof orders refer to fake buy orders that are placed to encourage other investors to place long positions to drive up Bitcoin's price. Since the recent upswing was driven primarily by heavily leveraged long contracts, the whale said the move was “irresponsible” and an inevitable withdrawal is imminent.
“You can only keep the price down for so long with phantom money. At some point, people would want to cash in their crazy winnings just to find no one on the other side of the market. That would be the show. ”
Whales tend to trade on Bitfinex rather than on other platforms because the exchange only offers up to 3.3 times leverage. Compared with the 100 – until 125 – times BitMEX or Binance. Therefore, traders on Bitfinex tend to trade with a longer term strategy as the low leverage significantly reduces the likelihood of liquidation.
Until now, 16 days in February , Joe 007 is in one Short position of up to $ 6.7 million. If the Bitcoin price for the rest of the month is below 10. 000 Dollar remains, this would mean seven consecutive profitable months for the investor.
As market sentiment is becoming more optimistic day by day, the question arises whether the rally, which was initially triggered by manipulation by spoof orders, can develop into an organic upswing in the short to medium term.
Is the Bitcoin rally organic?
In response to a question from the community about the possibility of the rally becoming organic with rising prices, said Joe 007 simply: “Let's wait and see.”
Some data, such as the activities of Willy Woo's Adaptive Fund's on-chain investors show that demand and interest from retail investors has increased in the past month. The upcoming halving of the Bitcoin reward was seen by traders as an important variable for the price trend of the dominant cryptocurrency.
A trader known as Satoshi Flipper said that halving for Bitcoin is seen as an important variable in price development:
“The BTC will be halved in 2.5 months. Don't be ignorant and pretend that it doesn't matter and / or should be ignored in the analysis. ”
Proof of text: cryptoslate