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BTC/USD Price Analysis: Watch out in thin market conditions!

The chart below directly illustrates why trading Bitcoin can be dangerous at times. 

The top chart shows BTC/USD prices on the Bitfinex exchange, while the bottom shows the same pair trading on Coinbase.

On the chart above there was a clear mini-crash lower with decent volume behind it. The difference can be measured in percentage on the right-hand side.

Amazingly, 7201.30 was the candle low on Bitfinex while on Coinbase the low stands at 7244.56.

This is a perfect opportunity for Arbitrage traders to take advantage of thin liquidity conditions during the holidays. 

Be careful out there as if you are trading and you see a crash like this you may panic or make the wrong decision. Keep a couple of charts open from a few exchanges or use a price aggregator.

Bitcoin Arb Trading

Author

Rajan Dhall, MSTA

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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