The cryptocurrency market over the last four days is not exactly the best. Bitcoin from this year’s high has already fallen by 10%. The Altcoins have lost even more and are in a significant loss after the weekend. But what caused this slump?
Of course there are many reasons, but we think these fundaments played the biggest role in the downturn, which lasts from Friday to the present day.
Binance technical issues
It all started on Friday, when Binance began to lag significantly. It happened during the biggest movements and many traders these technical problems cost thousands of dollars. Binance immediately corrected the mistake, which was also announced on their official Twitter, but problems persisted over the weekend.
And it was definitely not just cutting the platform. There were definitely more anomalies, as the Twitter user 0xMetatron pointed out under the tweet of the boss.
@cz_binance @binance I love Binance and appreciate very much you looking into this, but to call this a "performance issue" is a bit disingenuous. I've had limit orders popping in/out of existence, orders passing but not showing up in either funds or order history & missing funds.— 0xMetatron (@0xMetatron) February 16, 2020
Handling by whales
Over the past week, we have seen several large movements caused by whales. There was even a Bart pattern on the chart that big players use to shake off their weak hands.
(Bart Pattern occurs when an unexpected spike (or a drop) in prices is followed by a sideways movement, and subsequently by a sudden drop (or a spike) in prices. The chart pattern takes on the shape of Bart Simpson’s head.)
Moreover, this Bart was very well timed and apparently had a big impact on the market.