A big Bitfinex Bitcoin whale responsible for the Bitcoin price correction

Bitcoin price quickly regained the $ 10,000 mark after the price fell 5.35% to $ 9,853. Bitcoin has failed to hold above $ 10,330, and for the past four days, between $ 10,450 and $ 10,500 acted as hard resistance. The rapid 5.35% fall leads to liquidated leveraged positions worth $ 90 million at BitMex.

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Source: Skew.com

Bitfinex Bitcoin whale is anticipating a severe correction

As soon as Bitcoin corrected its price sharply, many people began to speculate that Bitcoin whales are active. And a Bitcoin whale on Bitfinex named Joe007 is said to be one of the players responsible in part for this price adjustment. Joe007 has called for a sharp correction in the market since $ 9,000. And perhaps the current bull market has been manipulated by the whales, and it is inevitable for low-money traders to withdraw.

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According to trader Jacob Canfield, Joe007 has been profitable for six consecutive months from August 2019 to January 2020. On average, this trader recorded $ 6.52 million in monthly profits for the past half-year. Throughout February, Joe007 was consistent in describing Bitcoin’s rally from $ 9,000 to $ 10,500 as a case of manipulation in the form of fake orders.

So far, Joe007 amounted to 6.7 million dollars in a short position. If the Bitcoin price sustains below $ 10,000 for the rest of the month, it will result in seven consecutive profitable months for investors.

In margin trading, fake orders refer to fraudulent buy orders placed to encourage other investors to place long contracts to increase the price of Bitcoin. With the recent boom driven by high-leverage whales, the whale says this action is irresponsible, and an inevitable recovery will come.

Joe007 said:

Trader filbfilb also pointed out that Bitcoin’s price had dropped when a selling wall was removed. Filbfilb asked Joe007 to take advantage of thin book orders on weekends to reduce Bitcoin’s price to under $ 10,000.

This will not be the first time a cryptocurrency whale has been involved in trading operations that have significantly affected the entire spot market. In December 2019, Joe007 took a bet with a Dogecoin trader to win 10,000 DOGE and then apparently used a wall to buy 800 BTC to protect the $ 7,200 level.

Whales tend to trade on Bitfinex

Whales tend to trade on Bitfinex more than other platforms because the exchange only offers leverage up to 3.3 times. Compared to BitMEX or Binance of 100 to 125x, the low leverage of 3.3x is not attractive to most individual investors with low capital. As a result, traders on Bitfinex tend to trade with a longer-term strategy, as low leverage significantly reduces liquidation.

With the market sentiment becoming more and more optimistic day by day, the question is whether the rally, which was initially kickstarted with manipulation through spoof orders, can evolve into an organic upsurge in short to medium-term.

Some data, such as on-chain investor activity from Adaptive Fund’s Willy Woo shows demand and interest from retail investors, have increased over the past month. Bitcoin halving has been considered a significant variable for the price trend of the dominant cryptocurrency of traders.

What next for Bitcoin price?

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Source: TradingView

A closer look at the daily and 6-hour timeframes shows that $ 9,800 has played a supporting role, and the Volume Profile Display Range, or VPVR, displays a high volume button in the range of $ 9,898 to $ 9,756. Below this level, there is also support at $ 9,400, near the 23.6% Fib retracement level.

If $ 9,400 doesn’t provide support, the price of Bitcoin can drop to the 50-day moving average at $ 8,800. Despite the slightly worse outlook presented above, traders do not need to sell at market prices and run up the hill.

After a sizeable week-long rally to see Bitcoin’s price move from $ 6,853 to $ 10,497, many traders believed that digital assets were overdue to correct.

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Source: TradingView

As the approaches approach weekly, traders will want to see Bitcoin reclaim and hold $ 10,000, and fingers will be crossed that the $ 10.1-10.3 trillion areas have not moved from support to resistance. If the price can sustain above this moving average, this will allow the bulls to target the upper arm of the Bollinger Bands at $ 10,516.

Bitcoin was not the only asset to undergo a sharp correction on February 15. When the digital assets dropped to $ 9,800, a large number of Altcoins also suffered a two-digit loss.

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