Take a look at the 1-minute candles between 5pm to 5:15pm GMT
In case there are still SHIB shillbots and apes around, here is something interesting to learn about what crypto HFT can do.
In the case of SHIB, the hype is throwing things way off technicals, presenting arbitrage opportunities to trading bots.
Take a look at the respective graphs of the coins compared to the value of ETH or BTC in the spot market. So you hear
things like "shitcoins are destroying the crypto market", you can see volume being drained from the entire market to pour
into SHIB to ride some hype, then you will see the bubble pop, where whales will only buy when they like it, and they lend
to technical analysis to determine their exit strategies and re-entries.
SHIB aside, this idea is supposedly focused on ETH. If you look at the Bollinger Bands from 4:45pm to 5pm, or ATR or any
indicator of volatility, you can see it contracting and uncertain after a small pump past to 4280 (where momentum slowed
down and buying cooled, coincidentally SHIB started pumping again).
By this point, it can be firmly determined that 4130-4160 level previously determined as supply has now flipped as a support.
What lay ahead for ETH was ~4200, an intermediate resistance (range of 4200-4250, can be taken as my last TP of 4206.9
before challenging ATH on Thursday last week). As SHIB mini-pump sustained and further upward momentum cooled (as it was
met by 4700-4800sats resistance), some smart money clearly decided to rotate back into ETH, or possibly BTC as well.
The main point is the 5:09pm candle (GMT) and the next few candles after. The 5:09pm candle was a flash buy that you could
say, "zapped" the 4200 resistance. Followed by the 4160 touching candle, which may have had the effect of triggering the
stop-limit entries to the short side, in case the price broke down the 4160 support. In a split-few minutes you see these ugly
John Wick candles, which is the power of HFT. But what implications do I postulate?
If those who got short orders filled and don't stop losses, we are in for a cascade of short stops and/or liquidations. Possibly
resulting in an impulse to ATH and beyond. The 4-hour candles from Friday to now have been even more interesting than
the accumulation after sell-on-BTC-ETF-news, which lead us to last week's ATH on BTC and ETH.
In the case of SHIB, the hype is throwing things way off technicals, presenting arbitrage opportunities to trading bots.
Take a look at the respective graphs of the coins compared to the value of ETH or BTC in the spot market. So you hear
things like "shitcoins are destroying the crypto market", you can see volume being drained from the entire market to pour
into SHIB to ride some hype, then you will see the bubble pop, where whales will only buy when they like it, and they lend
to technical analysis to determine their exit strategies and re-entries.
SHIB aside, this idea is supposedly focused on ETH. If you look at the Bollinger Bands from 4:45pm to 5pm, or ATR or any
indicator of volatility, you can see it contracting and uncertain after a small pump past to 4280 (where momentum slowed
down and buying cooled, coincidentally SHIB started pumping again).
By this point, it can be firmly determined that 4130-4160 level previously determined as supply has now flipped as a support.
What lay ahead for ETH was ~4200, an intermediate resistance (range of 4200-4250, can be taken as my last TP of 4206.9
before challenging ATH on Thursday last week). As SHIB mini-pump sustained and further upward momentum cooled (as it was
met by 4700-4800sats resistance), some smart money clearly decided to rotate back into ETH, or possibly BTC as well.
The main point is the 5:09pm candle (GMT) and the next few candles after. The 5:09pm candle was a flash buy that you could
say, "zapped" the 4200 resistance. Followed by the 4160 touching candle, which may have had the effect of triggering the
stop-limit entries to the short side, in case the price broke down the 4160 support. In a split-few minutes you see these ugly
John Wick candles, which is the power of HFT. But what implications do I postulate?
If those who got short orders filled and don't stop losses, we are in for a cascade of short stops and/or liquidations. Possibly
resulting in an impulse to ATH and beyond. The 4-hour candles from Friday to now have been even more interesting than
the accumulation after sell-on-BTC-ETF-news, which lead us to last week's ATH on BTC and ETH.
Comment:
Correction for 3rd paragraph: "after a small pump past to" 4250.
This analysis was purely based on price action and TA.