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Bitcoin Bots

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@Caseynotes, yes I read this too. Very interesting though not surprising. Manipulation on a far larger scale happens on other asset classes which is to be expected as Crypto as an asset class is still very small. 

These automated ‘bots’ have some very clever programming and algorithms behind them. They can take into account technical analysis and indicators that traders are likely to follow such as moving averages, support and resistance, Elliot waves, etc. They can then manoeuvre around such technicals and profit at the expense of the traders following such theory. 

What is happening on crypto’s has happened on all other major asset classes and is most probably still happening.

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@TrendFollower, just to point out that the article specifically referred to the special attraction to the 'unregulated' crypto markets of these types of malpractices .

There was nothing about moving averages but referred instead to the artificial 'bloating' of volume data by bots using very low latency and very high frequency trading. 

The article did refer to similar problems occurring in other markets with the introduction of high speed connections but those markets had regulators able to address the problem once identified, crypto doesn't.

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Yes I agree. Crypto is an unregulated and extremely high risk asset class full of manipulation risks.

I appreciate what the article states but am merely present my own view point, that is all on what happens in the wider markets including crypto’s. I suppose crypto’s are even worse due to lack of regulation. Even where there is regulation it occurs.

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