Bitcoin [BTC] price just witnessed huge volatility in its price with a flash rise and crash. There were a lot of interesting points that came about during the move.

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First, the rise was executed exactly at the break of a new day at 00: 00 hours UTC on 12th December 2019. While the buying volume was tremendous the following red candles were opened in smaller numbers.

Moreover, the price action also logged a difference between the prices of exchange from this particular one: BitMEX.

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BTC/USD 5-min Chart on BitMEX (TradingView)

BTC price rose from $7196 to reach a high at $7445 in less than a minute followed by a slump to $7093 in the next 40 minutes. However, this particular price action was observed only on BitMEX, whereas, it was slightly different on other exchanges.

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BitMEX Whales Cause Imbalance in Crypto Markets

The high recorded on BitMEX is $7445 compared to the $7309 on Kraken derivatives market. This reflects a difference of 1.8%.

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BTC/USD 1-Hour Chart on BitMEX (TradingView)

The high recorded on spot exchanges like Bitstamp and Coinbase at the moment was $7298. Bitcoin Basis (the difference between derivatives and spot exchanges) rose to about $150.

The rise was momentary and the large buy could have been the result of whale action. Some of the traders even criticized BitMEX for their operations. Nebraska Gooner, a crypto trader tweeted,

Why anyone trades on Bitmex is mind-blowing to me. They’re known for having the absolute worst scam wicks.. smh

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BTC/USD 1-Hour Chart on Kraken Derivatives Market (TradingView)

Nevertheless, the vast volume and 100x leverage on BitMEX makes it susceptible to these moves.

The flash rise towards $7400 caused about $8 million short order liquidations at the exchange. Moreover, at the reversal about $6 million long orders were liquidated. Hence, weak hands seem to be getting liquidated with sharp moves in Bitcoin.

The uncertainty in price action is holding the price above $7000. However, the bears and bulls on both sides of the current range seem to be in large numbers.

Where do you think the break-out of the accumulation will occur? Please share your views with us.

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Author: Nivesh Rustgi



Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com