Unveiling the secrets of Bitcoin’s recent plunge: The market crashes at 10 a.m. every day

A few days ago, we have been mentioning that from Christmas to New Year's Day, it is a Western holiday. Many funds, big money and big players are on holiday, which greatly reduces the popularity of virtual currency trading. As a result, either Bitcoin will fluctuate around 14,000, or due to too little liquidity, a small number of funds can manipulate the market to crash or pull it up. In the past three days, there has been a clear phenomenon of someone deliberately crashing the market, and we have observed that this crash is very regular.

Starting from December 28, 2017, at 10 am every morning, someone started to deliberately crash the market. As of the afternoon of the 31st when I was writing this article, this behavior had lasted for 4 days. Among them, the crash on the 28th was the most violent, lasting for 4 hours. The next one was the crash on the 30th.

The traces of this market crash can be seen from the trading volume. After 10 am on the 28th, the trading volume of the market crash was 4 times that of the previous hour. In the market crash on the 30th, the trading volume in one hour was also twice as large. This kind of market crash can quickly push down the price of Bitcoin within a few hours in the past few days, and it seems that the support level is deliberately broken, so there are heavy traces of human intervention.

What price will this artificial market crash bring to Bitcoin? Judging from the current evidence, it seems that someone is deliberately trying to push Bitcoin through the 11,000 level, which was the sideways range at the beginning of December. Once this price is broken, it is estimated that many speculators who want to take advantage of the opening of futures trading on December 10 will leave the market.

I would also like to remind you that many middle-aged women in Japan and South Korea have started to become virtual currency players, which is actually the reason for the sudden sell-off. Why? Because in Japan and South Korea, news about the stock market and other financial topics spread very quickly. This is of course related to the fact that everyone uses smartphones and has fast Internet speeds. More importantly, many Japanese and Korean players are quite "herd-followers". In simple terms, when they see people around them selling, they immediately sell as well. When they see people around them buying, they quickly buy as well. As for independent analysis in the process, they don't pay much attention to it.

This can be seen from the recent rapid increase in Ripple. Let’s put it this way, in other parts of the world, it may take one or two days to spread the news of Ripple’s cooperation with credit card institutions, but in Japan and South Korea, it can basically spread to most virtual currency players within one hour. So once the price starts to rise, they will be more active and faster than European and American players.

Therefore, we really need to consider how much effort the Japanese and Korean players put into this wave of "smashing at 10 o'clock on time".