How Bitcoin decreases by $2K in 5 minutes, wiping out $600M in longs.

Spread the love

A BTC/USD flash crash on short timeframes causes confusion for long sellers, but it’s business as usual for analysts.

On March 31, Bitcoin (BTC) dropped more than $2,000 in five minutes when a tsunami of uncertainty shook an otherwise quiet sector.


BTC/USD 1-minute candle chart (Bitstamp). Source: TradingView

BTC sees sudden volatility

On Wednesday, TradingView revealed a long trader’s nightmare emerging, with BTC/USD abruptly falling from $59,350 to $57,000.

At the time of publication, the pair had reached a low of $56,713 on Bitstamp, and the losses were still piling up.

“Exactly Bitcoin,” trader Michal van de Poppe said, referring to what has become a common occurrence on small time frames for Bitcoin.

Previously, day traders had concentrated on the upside after news from PayPal triggered a run-up to just under $60,000.

Those betting on the bull run continuing lost big on Wednesday, when the downturn liquidated long positions worth $600 million, part of a $1 billion 24-hour gross wipeout.

The positions’ death, though, was advantageous for quantitative analyst PlanB, as it helped to rid the market of unnecessary leverage and insure more organic future increases. In recent months, similar occurrences have happened with both long and short positions.

RECOMMENDED READ:  Why retail Bitcoin traders should foresee a price increase

“Beautiful stop loss hunting .. again,” PlanB commented on Twitter.

“Now that all leveraged longs are liquidated, we finally have room for breaking $60K in April.”

Funding rates creep up

Meanwhile, signs indicated that more price spikes for Bitcoin will necessitate any effort.

Funding prices on derivatives platforms rose on the day, hitting as high as 0.375 percent on Huobi, indicating that downward pressure is on the way.


Bitcoin funding rates vs. BTC/USD chart. Source: Bybt

Longer-term prospects look optimistic, with analysts pointing to $68,000 and $73,000 as the next obstacles to watch.

 292 Interactions,  4 today

Bank of Korea’s Governor is the first to criticize the “limitations” of crypto-assets.

In South Korea, there has recently been a large increase in crypto-investments. Unlike in the United States, regulatory authorities in Read more

Top Coinbase’s crypto-risk considerations, revealed

Coinbase has been the main news in the cryptocurrency industry over the last few days, with its public debut via Read more

Why this pattern could be important in keeping Bitcoin price over $60,000.

Bitcoin's price has risen by almost 9% in the last fortnight, with the cryptocurrency currently priced at $61k at press Read more

Why you need to keep an eye on these altcoins: ATOM, BNB, and THOR

Although eight of the top ten altcoins by market capitalisation are on the rise, there are many altcoins with smaller Read more

Token Registry for on-chain identifiers iintroduced by Cardano.

For quite some time, the Cardano Foundation has been working towards a more open network. To support this vision, it Read more

The Nigerian Securities and Exchange Commission (SEC) claims that the central bank’s crypto ban has caused business disruption.

The Nigerian Securities and Exchange Commission says it is collaborating with the central bank to develop a regulatory system for Read more

Bitcoin is down as Turkey’s central bank cracked down on cryptocurrency transfers.

Bitcoin has had a decent few months, with the world's biggest blockchain reaching its all-time high on the charts fewer Read more

Lover of “dogs and memes”, Elon Musk accused of pouring “jet fuel” on GameStop and Bitcoin at a critical moment

How much jet fuel is needed to send GameStop, Bitcoin, and Dogecoin to the moon? Depending on where you stand Read more

The Massachusetts Securities and Exchange Commission is attempting to suspend Robinhood’s broker-dealer licence.

According to state authorities, Robinhood has threatened novice buyers. The Securities and Exchange Commission of Massachusetts is attempting to suspend Read more

When it comes to crypto policy, are Biden and Yellen on the same page?

The lack of a centralised regulatory body for digital assets has long been a barrier for crypto-investors in the United Read more

Leave a Reply

Contact Us