The Bitcoin price fell yesterday, after 52 hours, with low volatility and low volume within an hour to more than four percent of 9.224 for $ 8.851 $.
The sudden decline led based on statistics of datamish.com to a Liquidation of 19.25 million dollars on BitMEX and $ 1.5 million on Bitfinex – a considerable, long pressure wave caused in a short period of time.
What triggered the abrupt retreat of the Bitcoin prices?
Normally, the Bitcoin price tends to after several days of low volatility in a tight range to a large movement.
During extended periods of span do not necessarily indicate a decline in the action, was in the case of Bitcoin in recent times, a steady increase in the price recorded at a low volume.
An upward trend with declining volume suggests that, as a rule a high probability that there is movement is a Fakeout in front of a large down.
The considerable quantity of Long contracts that have been placed on the large Margin-Trading platforms, such as BitMEX, Binance and Bitfinex, and the low volume on the crypto market to make Bitcoin tends to be vulnerable to a retreat.
Market data show that several whales or individuals that hold large amounts of Bitcoin-market, sold tens of millions of dollars a price of 9,200 dollars, which provoked a strong reaction in the case of holders of Long contracts and the buyers.
A Trader said the stock exchanges order book, which showed a market sale of $ 17 million to 9.204 dollars that was not filed before the correction to $ 8,000.
17 million dollars on the Bitcoin market sold
In markets with a high degree of indebtedness, such as Bitcoin, a relatively small market of sales, compared with the daily volume of the asset can cause a large resonance for both buyers and sellers.
The Bitcoin market has a daily volume of several tens of billions of dollars, but since it is the largest part of a leveraged volume on BitMEX, Binance Futures and OKEx, the actual volume is much lower.
Low volumes ahead of a much-anticipated event such as the halving of creating an ideal environment for extreme volatility.
Extreme volatility before the halving?
As a crypto-Trader, Jacob Canfield emphasizes, does not show historical data, that the halving of the block reward drops expected along with a broad rally.
In the previous two and a half coats of the Bitcoin price fell immediately after half – only months after the halving, there were signs of a strong recovery.
Canfield also notes:
“If you believe that Bitcoin will rise because of the halving, just continuously, do not let history be your guide. This map of Nunya Bizniz shows you how volatile BTC is 60 days after the halving can be. Be prepared for anything.“