While many of us (including me) had to live trough 36 involuntary blockchain free hours (that had good and bad aspects... ;-) ) I wondered how the order books of the steem engine tokens would react.
So what would you expect? Nothing good as if the market is grinding to a halt and no trading is possible that is usually bad for any market.
But I made the following observation:
Beer tokens and DWD tokens both increased quite significantly in price during the "black-out".
So what does this tell us?
Tell me! I can only post here what I think might be the background to this.. could be all wrong though...
From my point of view this says two things:
1.) As new sell orders could not be put into the system, the seller should be small-amount-token-holders that go over the normal steem-engine / steemconnect pathway to the exchange. This access ways blocked, hence no new sell orders and the price went up.
2.) Large buy orders still were in the system and as those orders are usually single, large quantity orders that are replenished day over day if they are filled. As no new sell orders came in, the price increased. (see above)
So my interpretation:
Im both tokens the buyers are larger accounts and the sellers smaller accounts, which by "psychologic market theory" could be a bullish sign for those tokens. ("smart money")
But whenever you trade tokens here: Look at the bid and ask spread! Do not overpay, stay patient and put also orders in on the bid side, do not only buy from the ask side!
I am long BEER and DWD
!NO INVESTMENT ADVICE! THERE IS A HIGH PROBABILITY OF ANY TOKEN GOING TO ITS INTRINSIC VALUE OF ZERO! WHILE I MAKE BEARISH OR BULLISH COMMENTS ON A TOKEN I MIGHT AT THE SAME TIME (OR PRIOR OR AFTER) TRADE THE EXACT OPPOSITE POSITION!