HOME CATEGORIES WRITE AND EARN ๐Ÿ”
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Bitcoin Crashes To $52,000 โ€” Key Factors Behind This Overnight Market Bloodbath

Bitcoin 2021/04/18 12:34 by Olivia Brooke
Bitcoin Crashes To $52,000 โ€” Key Factors Behind This Overnight Market Bloodbath

The Bitcoin market sent investors into a state of panic after crashing to levels last seen three weeks ago, in under 15 minutes. Crypto-Twitter went haywire with marathon tweets of community members trying to figure out the exact cause of the bloodbath.

Post-Bitcoin’s rally to a new high of $63k last week, the cryptocurrency dropped to $52,148 overnight. Bitcoin bulls had already been struggling to revisit the new highs prior to this, but the benchmark asset faced pushback at $60,174. At that price mark, Bitcoin had already declined by 1.9%, bringing weekly losses to 3.6% at the time.

The short-term outlook was still bullish according to analysts, but Treasury rumors may slow things down a little bit as the market has quickly reacted with liquidation.

Treasury Rumors force bulls to liquidate long positions

Although this is yet to be verified, many are pointing to the rumors of the U.S Treasury planning to charge financial institutions for money laundering using cryptocurrencies as a major propeller of the swift bitcoin price decline.

Mixed reactions from traders and investors trailed the scenes. Some classify the news as the usual theatrics rehearsed by bulls to sway weak hands into selling. Following the rumors, $9.09 billion worth of long Bitcoin positions has been liquidated within the last 24hours.

“Market spooked overnight on the Treasury rumors. High leverage and low weekend liquidity causing a nearly 20% sell-off before recovering.” Skew noted.

Crypto trader and YouTuber “CryptoDaily” reacted to the news the same way other analysts have responded: “Over leveraged longs getting rekd is always a good sign for a market reset.”ย 

Morgan Creek’s Anthony Pompliano simply joined “HODL Twitter” as he reveals he went ahead to buy the dip. For whales, buying the dip is always good for business and analysts are collectively reiterating that strong hands will go to any length to persuade weak hands into selling.ย 

Bitcoin begins swift recovery, major upside correction still possible

Bitcoin has quickly bounced back, correcting gains slowly. At the time of this writing, Bitcoin had surged to $55,525.

Bitcoin Crashes To $52,000 โ€” Key Factors Behind This Overnight BloodbathBTCUSD Chart By TradingView

Retesting $60,000 seems possible if Bitcoin can maintain these price levels as bulls work towards correcting losses. Glassnode’s data also softens the market blow, as it revealed that every Bitcoin bull cycle saw at least three supply peaks held by short-term holders (weak hands), and the market is only just wrapping up from the first, with two more to go.

0 Like(s)



You should also read...

Bitcoin 01/12/19 19:00 by Cole Petersen
Analysts Flip Long on Bitcoin After Bulls Thwart Brief Sell-Off
Bitcoinโ€™s bulls and bears have been engaged in a heated battle over the past several days and weeks, with BTCโ€™s latest bout of volatility being a sharp downtrend that followed its recent attempt t...
Read More
Bitcoin 16/12/19 13:00 by Nick Chong
Bitcoin Futures Gap Exists at $11,800; Can Bulls Fill the Gap?
If youโ€™ve been on Crypto Twitter at all during 2019, you’ve likely heard the term “Bitcoin futures gap” mentioned again and again. For some context, a “gap” in a financ...
Read More
Bitcoin 28/07/20 18:51 by Adrian Klent
Bitcoin Retakes $11k โ€” Further Reinforcing Analysts Take That $20,000 Is In Sight
At the time of this writing, Bitcoin is trading at a price of $11,026, which was first attained in the last 24hrs. The entire cryptocurrency community, especially Bitcoin users on Twitter have been t...
Read More
Bitcoin 28/08/20 18:00 by Cole Petersen
Bitcoin Bulls Defend Critical Level as Traders Target Upside
Bitcoin bulls have been able to catalyze some slight momentum today that erased all of the losses that came about as a result of yesterdayโ€™s dip. Analysts are now noting that the benchmark cryptocur...
Read More
Bitcoin 18/07/21 21:02 by Olivia Brooke
Why BTC Dropping Below $30,000 Right Now Is More Bullish Than Bitcoin At $60,000
Usually, a drop in the price of an asset is interpreted as a loss for the asset and its investors. However, with the application of fundamental analysis, there could be some anomalies, and this might...
Read More