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The worst Bitcoin price since 2017, what happened?

Today, the price of Bitcoin has dropped 19% in 1 hour to $ 6,000. In a matter of minutes, the cryptocurrency king had even $ 5,500 on Binance and $ 5,200 on BitMEX. Although it is too early to say what happened and what we should prepare for next time, there are still some signs of extreme concern.

Liquidity without mercy

Today, BTC prices have plunged the most since 2018. It is even worse than the massacres on January 16, 2018 and June 27, 2018, with losses of 16% and 14, respectively. % by large margin.

Obviously, the terrible price drop occurred after the huge number of long BTC orders were liquidated on major exchanges. According to Ryan Selkis – founder of Messari senior blockchain analysis group, $ 665 million long BTC has been liquidated on BitMEX today.


Liquidity of USD 665 million Comeinand long on BitMEX !!! "

According to some calculations, the total volume of long liquidity on many platforms may be greater than $ 2.25 billion. This bloodbath may also be correlated with the sell-off of 'Satoshi Funds' which happened yesterday when the wallet with mining rewards between 2009 and 2010 sent 800 BTC as an automated detection system.

Additionally, wallets on leading exchanges like Binance and Huobi transferred $ 21.7 million in BTC before the price plummeted, possibly a bearish red flag.

Is this the bottom?

That is the question that traders across the globe are asking themselves. Usually, such declines are balanced by a two-digit incremental move shortly thereafter. Some traders believe that the price of BTC is testing the MA 200 weeks. If this level cannot be crossed, it will be a bearish indicator.

"BTC – I always believe…. And it did so – waited since July 2019!

Low range

5K dollars

Weekly MA 200 (close enough) "

According to CoinMarketCap, BTC has performed the best among the top 10 coins. Holder BCH, BSV and XTZ suffered the most damage.

chart btc

Source: CoinMarketCap

The general fear in the cryptocurrency market may soon be replaced by great greed, but many investors advise against making decisive moves in uncertain and volatile times.

"I do not recommend people to' buy the dip '. Global markets hardly begin to price in context The pandemic has a negative impact on the economy and cryptocurrencies have a clear correlation.

I said this before, if you really want to trade, I will trade it long Bitcoin and short shitcoin pair ".

Overall, we don't see clear evidence that proves $ 6,000 or even $ 5,500 is the bottom for this rally. Therefore, it is necessary to provide the market with an opportunity to cool down and to wait for the vaccine to fight COVID19.

Arthur Hayes: Bitcoin will not return $ 3,000

Earlier today, CEO Arthur Hayes of BitMEX was share Link to his article on BitMEX Crypto Trader Digest, where he expresses his views on the current situation, especially about Bitcoin.

In it, Hayes does not believe that BTC will return to $ 3,000 and that the move will stop somewhere between $ 6,000 and $ 7,000.

However, it's clear that Hayes wrote before Bitcoin lost over $ 1,000 in a few hours and dropped to $ 6,000.

“Great insights from Arthur Hayes”

"Fear and uncertainty are enough to inspire global margin prediction. Bitcoin is no exception. Although I don't believe BTC will reconsider $ 3,000, the maximum damage could be somewhere between $ 6,000 and $ 7,000 Bitcoin. Any cryptocurrency hedge fund that allows quarterly or less liquidity will fail even more. They will dump the coin into a falling market, pushing prices lower on margin. "

You can see the price of BTC here.

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Minh Anh

Bitcoin Magazine

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