10k bfx wall is back
They obviously do not want to sell and I am betting they are using a pretty high amount of margin to execute it. The fact that weak hands are actually selling because of it is sad.
I would disagree that they don't want to sell. They have put the wall up several times over a few days; at this point anyone that wants to buy a lot of bitcoin would have seen that wall pop up and can expect it to pop up again a few times a day, and they will be able to buy a lot instantly without any slippage. This guy is just advertising his wall, waiting for someone to buy. Putting that wall up so often would be idiotic if they don't want to sell because if the price is undervalued, someone is going to buy a few thousand instantly and that wall guy will lose a ton of money.
I just do not believe any major walls that are placed on BFX compare to BSP. With margin and being able to short on BFX most of the time any walls that are placed on BFX will be pulled once it simply gets near the price. I do not even think BFX has that many coins sitting on their BSP account to sell that many coins. If he was willing to sell that many coins, it would completely wipe out BFX's order book like every time there has been a spike. There is a reason why that wall has been holding for so long on BFX compared to if it was placed on BSP. There really aren't any major players on BFX like BSP wanting to even remotely buy that many coins.
BFX has grown significantly and I think its comparable in size to btc-e, not counting litecoin or other alts. BFX doesn't need coins on their BSP account; they have more than enough on their own books. You really think someone is shorting 10k btc on max leverage on bfx when someone could easily buy a large chunk if not all at once, especially now since they have had a lot of time to get their money ready and think about that decision? They could lose a few million very fast if someone does decide to buy into that wall, given that they are shorting. We can speculate about whether or not there are major players on bfx and its hard to tell, but I think there are now just because it is the best way to short bitcoin, which has attracted many traders. No one would risk so much money by shorting 10k btc on the assumption that no one can or will buy into their wall. The reward of possibly buying at most few hundred slightly cheap coins is nothing compared to that risk. And the fact that this person is advertising the wall, putting it for a few hours every day, suggests that they are trying to sell the coins.
BFX's order book I believe is a combination of their own order book and BSP's order book. When there is a disconnect between their order book you will notice a really large spread between the two. When there is minor spread it usually is because of low volume and everything is working properly. If you look back to when the 10k wall was placed on BSP how many people reacted and sold then. A lot of people know that BFX walls are unreliable and barely move the market. BFX order book is really thin. That have had plenty of problems before when major sell orders have been placed and they have ran out of coins on BSP causing their order book to go to $0. After knowing all of this why would some sell 11k coins on BFX legitimately when margin calls would occur like crazy if someone sold that many coins. I have never seen large sell or buy orders on BFX past 1k coins, so it is not that large of an exchange yet. If they wanted to sell they would do what was done on BSP and move the wall closer to where the market action is happening rather than at points no one is going to touch. Constantly moving it backwards is also another clear sign they do not want to sell.