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How Bitcoin Price Manipulation Works

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  • How Bitcoin Price Manipulation Works



    


    myrealtorphil commented

    totally agree it's manipulated. But can you address what a systematic alteration would take? How would regulation occur?

    I replied

    The systematic alteration takes a good bit of money along with fake news and social media hype. The fake news comes in the form AI written and auto-posted blog content, email campaigns and backed up with thousands of twitter bots and other social media that promotes, likes and shares the fake news blog content. Because the order books of crypto exchanges are available to view - all of this data can be collected and analyzed by 'big data' crunching trading algorithms - this gives them the edge in determining when the crowds have bought the hype, placed orders and set their stop-losses too close to the market.

    There comes an ideal moment, mathematically calculated, when the money comes in, and at the same time the FUD articles and social media campaigns get started.

    The money works in two ways - first placing leveraged trades and futures positions opposite the crowds - and second a campaign of real trades in the cash markets across all exchanges at the same time and pushes the market JUST enough to start hitting the mass of stop-loss orders... this price move along with the real-time FUD causes the mass of noob traders to panic or jump on the hype... which then swings the prices even more deeply. This is where the profit-taking exit positions are already waiting in the leveraged trades and futures positions.

    And the cycle repeats, both to the long side when prices look like they are about to drop, and to the short side when prices are edging to break higher. This kind of manipulation is not new - it is as old as the stock market itself. Just that now, the automation takes the process out of the hands of individuals - who then can say they are not causing manipulation, they are letting their bot do their trading...
    read more on how 'bitcoin prices are systematically manipulated'


    How Bitcoin Price Manipulation Works - Transcript

    I believe Bitcoin prices are being
    systematically manipulated

    in this
    video I'll explain my conspiracy theory
    and what I do in my trading to avoid
    being caught up in these kind of
    catastrophic moves

    before the details
    this risk disclaimer I am NOT a
    financial adviser and this is not
    trading advice this is my conspiracy
    theory and what I'm doing in my own
    trading


    I believe Bitcoin prices are
    being manipulated in a way that no
    single human can do.

    my conspiracy theory
    is that Bitcoin prices and all of the
    crypto currencies are being manipulated
    by automated trading programs.

    this is
    made possible by three different things
    that we see today in today's technology:


    first thing is fake news where all of
    the articles going out on too many
    different websites and through many
    different social media platforms are
    generated on purpose
    by people who have nefarious goals in
    mind

    the second thing that makes this
    all possible is that all of the
    different trading platforms have
    application programming interfaces that
    allow for automated trading robots the
    third thing that makes this all possible
    nowadays is the Bitcoin futures
    contracts

    and here's How Bitcoin Price Manipulation Works

    we started off by having a trading
    formation where the markets look like
    they are building to be taking off

    Throughout this time social media is
    automatically flooded with BOTS who are
    talking about all of the positive
    indicators of Bitcoin prices going up.

    this is magnified by having legitimate-looking articles being published on to
    blogs and different resources

    the next step is that the automated trading BOTS
    take large short positions in the
    futures market, and then, at a specific
    time as you can see by this chart pattern,
    the bots all start selling on
    all of the different exchanges at the
    same time.

    because they're selling
    real Bitcoin, prices are plummeting.

    because they have futures traded
    contracts that are short positions they
    are making far greater money than it's
    costing them to drive prices down.

    as prices lower down here then we're seeing
    small traders like yourself and myself
    having all of their positions liquidated
    because the prices have gone down too
    much

    especially when people are using
    leveraged trading positions so for
    example over on http://1fox.io

    you can do leveraged Bitcoin trading
    with up to 10x leverage - very simple and very fast.

    should the prices drop
    hard against your position then your
    position is automatically liquidated
    which puts more selling pressure into
    the markets

    of course the manipulation
    doesn't work just on the short side, when
    we get into a market position like we
    are now and prices are edging against
    the lowest levels - then the bots and the
    manipulation goes on the other side of
    the fence. In these circumstances
    there are many negative articles that
    are published on the internet the social
    media bots are referencing those
    articles all over the place and making
    people think that bitcoin is going to
    crash and then people are taking
    leveraged short positions in their
    Bitcoin trading.

    just as prices look
    weakest this is when the bots do their
    thing again they have taken leverage
    long positions in the futures trading
    market on Bitcoin and then they start
    buying Bitcoin on mass on all of the
    different exchanges, all at the same time.

    This can only be generated by bots -
    this can't be done by humans because
    it's too coordinated at exactly the
    right moment

    I'm not the only one
    that believes that bitcoin prices and
    cryptocurrency markets in general are
    being priced manipulated; trusted news
    sources like Forbes, Global News, and
    Bloomberg all reporting on price
    manipulation in Bitcoin and crypto
    currencies

    so if you have any comments
    about Bitcoin prices intentionally manipulated I'd be very
    interested to hear what your conspiracy
    theories are and what you think is also
    added to this massive price swings that
    we see in Bitcoin.

    my strategy for
    avoiding being caught up in these kind
    of catastrophic price moves in Bitcoin
    that move a thousand dollars over two
    days of time - is pretty simple actually...

    I don't look at the 15-minute bars very
    often. Instead, I look at the 12-hour bars
    and I use moving averages to smooth out
    the overall price action

    the
    manipulation and the BOTS can move the
    prices within thousand dollars range
    pretty quickly, but for larger moves they
    just can't do it.

    and so by looking at the longer-term
    momentum of the market and not getting
    caught up in the short-term small price
    fluctuations, I can trade that in a way
    that takes up less of my personal time - it creates less worry - and it's quite profitable

    so I look for larger 1-2-3 bottom formations and moving
    average crossovers as my entry by using
    the 12-hour bars and then I look at the
    4-hour bars as my exit so then I'm
    looking for the 1-2-3 top
    formation and the crossover on the
    4-hour bars as my exit point

    these two different trading systems let me get
    in on the larger market moves and not be
    spending time worrying about every
    different price fluctuation.

    if you have any comments about Bitcoin prices
    being intentionally manipulated I'd be
    very interested to hear what your
    theories are and what else you
    think causes these short term, massive
    price swings that we see in Bitcoin.
    how does Bitcoin price manipulation work?
    Last edited by introtocryptos; 02-10-2019, 07:20 AM.
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