Bitcoin’s most recent flash crash might have been a miraculous gift for some. However, it was an early Halloween horror for others.
On 21 October, the king coin tumbled from its all-time highs of around $65,000 to relive its former days as an $8,200 asset on one exchange platform. This took place on the Binance.US and left some shaken traders wondering if they could cash in on the next glitch.
To that end, crypto-researcher Max Maher recently analyzed the cause of the flash crash and came up with some suggestions for what traders could do – if they wanted to take their chances.
Let’s get down to business
Well, this happens to be (literally) a ten thousand dollar question. Can traders profit from flash crashes in the future? Maher confirmed it is possible, but advised traders to be ready in advance. In this context, he claimed that buying is the way to profit. The analyst explained,
“Sure, if you happen to be looking at the charts and saw that 87% dip you could have made a purchase right away, as I’m sure some Binance users did, but more likely than not most of the purchase[s] at the bottom were done with bots or limit orders.”
For that reason, Maher warned investors to be very careful. He pointed out that even after an automatic purchase, the price could fall lower. Furthermore, he explained that…