Bitcoin’s Price Crashes Over $400 in a Matter of Hours

2 min


bitcoin stock crash

It seems that only yesterday Bitcoin was inching towards $3000 and a new all time high was incoming. However, as the beginning of the week hit, Bitcoin’s price drastically crashed over $400 in a matter of hours, signifying a 15% drop in price setting back traders a few weeks.

While such a dramatic drop is never good, it is important to keep it in perspective. It was only two weeks ago that the price was at $2500, meaning recovery is not unlikely. Along with Bitcoin, Ethereum crashed as well after briefly touching $420 on many exchanges. Such a correction was imminent for both cryptocurrencies because their price has diverted too far from any technical analysis indicators.

It is speculated that Okcoin’s liquidation of long positions attributed to the negative market pressure. According to @WhaleCalls – a bot powered bitcoin market reporter – the exchange liquidated thousands of positions at the price of roughly $2500.

This isn’t the first or the last time that Okcoin’s liquidation has caused massive movements in the market, that is an inherent problem with margin trading, as at some point the liquidations hit and create unsustainable pressure on the market, causing it to correct.

There have been no recent negative news which should be a cause for a panic sell, meaning that the current price action just seems like a product of traders’ speculation. China and Japan are still buying Bitcoin like crazy and we can see that because of the existing premium in coin prices.

Furthermore, according to reports on r/BitcoinMarkets, there have been massive sell walls at $3,000 signaling price suppression. For whatever reasonsr there are forces out there that don’t want Bitcoin’s price to rise even further, the reason for that is still unclear. Some may speculate that traders are suppressing Bitcoin’s price in order to fuel Ethereum’s rise even further. After all, as Ethereum inched towards $400, its market cap also inched towards that of Bitcoin. Rest assured if Ethereum surpasses Bitcoin is market cap, many traders will take altcoins much more seriously and the flippening may happen sooner than you think.

Dislaimer: This is not trading advice, this article is for educational purposes only. If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

Sending
User Review
0 (0 votes)

Like it? Share with your friends!

What's Your Reaction?

hate hate
1520
hate
Angry Angry
1064
Angry
confused confused
456
confused
Fail Fail
760
Fail
fun fun
152
fun
Geeky Geeky
608
Geeky
Lol Lol
456
Lol
OMG OMG
152
OMG
Win Win
1520
Win
WTF WTF
1368
WTF

Comments

comments

Nikolai

Nikolai is a Canadian writer currently living in Singapore. His started writing on Blockchian and bitcoin since 2017, he do Reviews and Analysis on Coins, ICOs. He holds a Master in Business Management and have keen interest in Computer Since, Blockchain and love to write on latest trends in Blockchain space.

We would like to keep you updated with special notifications.

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format