Bitcoin has fallen below $ 8,500 in minutes

Yesterday happened one of the biggest drains of the stock market this year — just a day its market capitalization declined by nearly $ 30 billion, and the price of Bitcoin fell to a three-month low in the zone 8370 dollars. Sharp dump caught many traders off guard, which led to a wave of liquidations on the stock exchange BitMEX. Understand the possible causes and consequences of yesterday’s incident.

A new collapse of the market

The pad Bakkt to trade Bitcoin futures had a positive impact on the price of the cryptocurrency. The next day she began to fall in price rapidly. However, it remains unclear whether the start of trading on Bakkt directly with the price action of BTC.

Plums Bitcoin predicted by some experts, however, yesterday’s events still was a real shock to most market players. Note that the downward movement of the asset increased sharply after breaking the support level of 9500 dollars: exactly an hour the rate fell from 9414 to 8421 dollars, that is almost a thousand dollars. Prior to this, the price of cryptocurrency was moving in the wedge that had formed on its chart since the beginning of June. The graph below yesterday’s fall it is easy to notice the two big red candles.

Source: TradingView

Drop BTC immediately responded to his opponents. Here what about this wrote a famous economist Peter Schiff.

Bitcoin finally fell below the support line of a large wedge that has been forming for several months. This pattern technical analysis indicates a worst-case scenario for the bulls and testifies to the achievement of long-term maximum value of the cryptocurrency. The risk of falling of its price to $ 4,000 and below is very large!

Dump very negative impact on all altonah. The Ethereum fell nearly 20%, XRP has reached a new annual minimum and Tether surpassed Litecoin in our ranking of cryptocurrencies. The latter, incidentally, also fell by nearly 20 percent. As always, the activity of bears in the market painful of all for holders altcoins.

For traders who yesterday held open long positions, events also was not the best way. One of the most popular kryptomere for margin trading BitMEX a Bitcoin report on the elimination of huge numbers of longs in the total amount 604.9 million dollars.

Source BitMEX

But since the beginning of this year, the amount of the liquidated long positions reached $ 9 billion. This same ratio for short positions below — almost 5 billion liquidated shorts since the beginning of this year. Recall, trading with leverage is very riskywhich can lead to complete loss of your Deposit. Yesterday is a Prime example of how thousands of people could lose their money in an instant.

Last night the cryptocurrency market unpleasantly surprised. Worse than that only the fact that Bitcoin did not jump from the local minima and didn't even stay above $ 9,000. Instead, today the rate dropped even lower. So while the prospects for immediate growth are not visible.

The situation on the market follow our cryptodata millionaires. More interesting articles can be found in Yandex Zen.

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