Bitcoin in a Sudden Major Crash? And What’s Up with the Suspicious Activity in the Order Book?
Hello everyone, huge crash! With another near-100,000 yen drop, the alert level is MAX@xi10jun1.
Bitcoin has dropped again quite dramatically, hasn’t it? By August 1st, it seems to be due to concerns about the SegWit issue affecting Bitcoin.
I’ll leave the technical details to the experts for now, but it seems the current market will have difficulty pushing prices higher for the time being.
And continuing from the last time, there is an important notice for paid readers, so please read further down if you can.
※This column is designed so that half of it can be read for free, a truly conscientious design. Of course, if you read up to the paid portion (updated weekly for 400 yen per month, so about 80–100 yen per column), it would be a great encouragement!
This week’s results (June 9, 2017 – June 15, 2017)
First, as usual, the results. I’ll announce the gains and losses first.
- Last week (until June 8, 2017) assets: 110,701 yen
- This week (until June 15, 2017) assets: 116,047 yen
- Change: +5,346 yen
Asset highs were updated again this week! It stabilized in the 110,000 yen range. I’m earning more than stocks…
Really, you just accumulate assets steadily in margin trading. When I look at charts, I think “If only I had done this, or that,” but I keep a rule not to hold positions across days, and I will continue to trade with safety of assets as the top priority.
I wonder if we can break through 120,000 yen next week?
Suspicious movement in order book seen on BTCFX
Now, for this crash, after hitting a high of 351,719 yen on the 12th, it started to fall, but there was a movement that caught my attention. Please look at the image below.
In the bottom-right of the image, focus on the bid side. There are about 10,500 BTC worth of orders there, right?
A few tens of seconds later, it looked like this.
It may be hard to see, but you can see the bids drastically decreasing.
During the previous uptrends, the number of buy orders didn’t fluctuate much, and rather they thickened as enthusiasm grew.
But ahead of the larger decline, orders dropped all at once.
And eventually, it dropped below 9,000 BTC.
After that, it fell even more, marking this week’s low of 246,644 yen for BTCFX. Since then, the current buy side has about 4,000–5,000 BTC, which is roughly half of what it was on the 12th.
Where did those 5,000 BTC worth of orders go…?
Free summary: Pay attention to the order book as well
The Bitcoin market is said to be driven by speculators at the moment, but if those orders disappear, you might be able to predict some movements to a certain extent.
Movement is easy to focus on, but you should also pay attention to such near-term price movements.
Also, the entire cryptocurrency market is down today; is it starting to move in tandem? I want to analyze that as well, so I’m thinking of changing the column’s name soon…
As for such order book movements, there are even more unusual movements that weren’t captured in the video, and I’d like to discuss how to utilize them in paid columns.
Regarding paid column access
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Ending corner 1: Shopping with Bitcoin!
In fact, the overseas e-commerce site “FANCY” allows you to purchase items using Bitcoin! It does have some shipping costs, but there are stylish items not seen in Japan all in one place!
For how to use FANCY, please refer to this blog post.
- →Explain! Creating an account, registering, setting up, and the flow of purchasing on FANCY | Yutori-sedai Investor Jun
- →Buying items on FANCY with Bitcoin (Bitcoin) payment method | Yutori-sedai Investor Jun
Ending corner 2: How to file taxes for Bitcoin margin trading (BTCFX)
You must properly report BTCFX earnings as well! I’ve written a blog post after confirming with the tax office by phone, so please refer to it.
※Tax offices and tax accountants may have differing opinions. Also laws can change, which may alter how you file. Before filing, be sure to confirm with your nearest tax office or a tax professional.
※ Free portion ends here. The rest contains detailed analysis and future outlook, so it is paid content. If you want to read more, of course, supporting the column through subscribing would be greatly appreciated! Thank you for your continued support.
