What was THAT about? After the Bitcoin exchange rate the last couple of weeks has shown an extremely strong rally, we had reported on Tuesday that it could be so maybe for the time being, over. Nevertheless, Bitcoin, to free themselves from the clutches of a downward trend and the 10,000, he won back brand. At the present day, even a peak of 10,300 USD has been reached. But then the Unexpected: the Bitcoin price came crashed within 20 minutes of 700 USD, only to jump again in a few hundred dollars upwards. We explain to you what is happening and summarize the possible reasons and consequences.
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Bitcoin price Crash – it went down vertically
At the Moment, the Bitcoin price seems to be more unpredictable as a Moody Diva. First, he was partying a multi-week rally, then a drop of about 10,000 to 9,500 USD came from Sunday to Monday. By yesterday evening, the BTC was able to.and then the 10,000 mark once again recapture and reached a daily high of about 10.300 USD
Everyone had been happy about this development and a new rally was hoped, was then torn last night, at 22:20 from his Dreams. The Bitcoin exchange rate experienced a Flash Crash, that is to say a rapid collapse within a few minutes, which is partially fetched then reflected in.
Specifically, the Bitcoin rate of 10100 USD crashed at 22:27 9.400 USD at 22:48. This corresponds to a insane drop 700 USD within 20 minutes. Measured in terms of the yesterday’s day high of 10,300, the slump even worse: 900 USD within 4 hours and 17 minutes, which means almost 9% Minus. Any brave Bitcoin Fan who can bear the sight, illustrated by the following Chart, how massive the drop was actually.
At the time of writing of this article, has caught the Bitcoin price back to just under 9.650 USD and was able to get back to 250 USD at the Low of the Flash crash, well, endowed but still 5% in the Minus. The magical $ 10,000 mark is moved, however, again into the distance.
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Crash liquidated 120 million USD Long positions
All the traders who hoped for a renewed rise in the Bitcoin price, have been hit by the Flash Crash unexpectedly. So, according to the skew.com 120 million USD of Long-were liquidated positions on BitMex.
In the subsequent high volatility in the range between of 9,400 and 9,700 USD were closed with security other positions.
In the case of such extreme break-ins within a short period of time, the question of Manipulation is never far away. Another explanation is a Bitcoin Whale, has thrown his Coins all at once on the market. The sighting of such a whale, we reported Tuesday about a possible next Dump speculated.
Bitcoin price Flash Crash so bad?
The FUD, i.e. fear, uncertainty and doubt felt during and after the Flash Crash in any case. The high volatility and the many direction changes of the Bitcoin price over the last days to make forecasts on the one hand is very difficult, on the other hand, but also for a lot of Extreme. The worst seems to be but for the time being, over.
So ugly the Crash may be, from a chart technical point of view, it is important that the Bitcoin price is again above the mark of 9.500 USD, which had been become after the break-in of the beginning of the week to assist and during the Flash Crash of broken.
During the stay a the next down trend to conjure up, others are more optimistic. For a further increase of the Bitcoin price 2, very bullish signals in any case. For a BTC on the 27th of could. January, the 200-day Moving Average, breaking through what was in the past, always very positive.
Bitcoin moved back above its 200-day moving average on 1/27… positive milestone and reinforcing 2020 is shaping up to be great year for $BTC #bitcoin
– whenever BTC >200D, win-rate (6M forward) jumps to 80% and essentially “re-entering” bull market (>200D)#BTD #bestasset2020 pic.twitter.com/YbpQYHpLaj
— Thomas Lee (@Fund stepped in) January 29, 2020
On the other days was in the Charts a Golden Cross where the 50-day simple Moving Average the 200-day simple Moving Average broke through. Also this Formation is under the traders as a very bullish known. So, we can only wonder in which direction it will go.
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