Bitcoin price continues gearing up for advance as they short trades arebeing liquidated. This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here . Not a member? Join now. Bitcoin Price Analysis Bitstamp 4-Hour Candle Chart From the analysis pages of xbt.social, earlier today: Price action continues looking favorable to our long trade. OKCoin Futures Liquidation The screenshot immediately above is of an OKCoin forced liquidation that happened shortly after the last push higher on 9 Sept. Right-click on the image, open it in a new tab, and prepare to be shocked. I’m not posting this to mock the trader or to celebrate that loss. My reasons for posting this are four-fold and serve as a reality check and by way of learning from others’ mistakes (rather than our own!): 1) to show that these things happen. It is an astonishing amount of money that was lost by the trader and went into direct ownership of the OKCoin company. 6519 BTC is the equivalent of $4mil (USD) at the liquidation price of ~$628.85. 2) just because you’re a tuna, dolphin or large wallet in the market does not mean you have a good idea of where price is going 3) there are multiple reasons why that trade was poor: its direction was wrong and the loss should never have been allowed to run to forced liquidation. In other words the trader lacked method, money management and risk control measures 4) there is no rational justification for ever placing an order of that size and value in the market. 6500 BTC (or ~40,000 contracts) does not match the liquidity in the market. OKCoin futures has fairly high liquidity, but to comfortably get in and out of position traders should not exceed max position sizes of […]
