OK,
No charts, here is what's happening (or at least what I am seeing) in layman's terms:
1) Few days ago, someone (or a group of people) placed an order to sell a 1000 coins @ $605. This causes the uptrend to almost stop going up beyond this line. I call this an "UpBlock".
2) Another DownBlock was placed the opposite way @ $540.5, this causes it to not go beyond this line.
3) As the BTC price as a result of (1) above, goes a little downwards (about between $5 or $10), the UpBlock is moved backwards to block any uprise in BTC closer to the new "lower" price.
4) During this movement; say it's now at $570, then someone places an ASK order for $100 at $571, and then another for $50 at $565, this causes a slow-tip downwards.
5) With the BTC bought above from (4), as they accumulate (Generate some BTCs as a result of buying), they would be placed to "Sell Now" type order which are about 100 BTC's each, this causes the price to shoot downwards for about $10 eventually in a ripple-effect.
6) There are about 3-4 people repeating the same, few seconds apart between them. this causes the price to go down further.
7) As the price has gone down another $10, the above is repeated.
8 ) Currently, the UpBlock as a result has been moved down gradually so far and currently at $569.500 for 1164 BTC's.
9) As I estimated earlier few days ago, I was expecting it to go into $573, but now with 900 BTC's placed downwards on $540, I reckon it's going down there, or even less if the DownBlock is moved further.
As a result, the price is being pushed downwards and possibly preparing for the FBI auction.
Warning: Once the Blocks are lifted, be aware, the price will shoot up like you have never seen before, just like a spring exploding upwards once you release it after a hard push.
Personally, I'm happy with the above as I sold at $605 few days ago, I only lost $20 since the down-move.
I hope this gives an idea about what's going on, the question is: "Is this legal?!", well, since it's a decentralised currency, I don't think it can be questioned, or at least don't know ...
Either way; Good luck to all...
Kind Regards
Heider
This seems very plausible. Of all the big-money involved in the auction, I think the risk of the btc market price rising or falling dramatically between the time their bids are submitted and the auction winners are announced is too great to leave to chance, and concerned parties have taken the steps you outlined to protect themselves