Dump of Bitcoin caused a massive liquidation of long positions. What’s next?

The rally of Bitcoin over the past month and a half has brought us many surprises, because few expected that the main cryptocurrency so rapidly strikes several important resistance levels. Players on the decline long awaited market correction, and today their expectations come true.

In just two hours the Bitcoin’s price dropped almost $ 900, the asset is depreciated down to $ 7100. The abrupt change of situation in the auction caused a massive liquidation of long positions. At the moment Bitcoin is trading at $ 7119, over the past day the price of the cryptocurrency fell by 9.7 percent.

The bulls go on vacation

After the subsidence of the BTC managed to roll up and was able to gain a foothold above $ 7300 for several hours. Drain number one active in the entire stock market caused a very negative reaction in currency pairs with Althingi, almost all the coins with large market capitalization fell by an average of 8-10 percent relative to the U.S. dollar.

Due to the sharp decline in prices many traders are caught in a “trap” — their long positions were under threat of liquidation, which gave additional impetus to the fall. According to preliminary estimates, the total amount of liquidations on BitMEX has reached 207 million dollars.

Some cryptoanalysis assume that the dump is associated with the decision of the court of new York on the suspension of transactions USDT on Bitfinex. Recall that in late April, the exchange was at the center of a major scandalassociated with the concealment of huge losses from their customers.

See also: the return of the bears: when the Bitcoin drops below $ 7,000?

But the Crypto Loomdart trader has his own theory — the fact that the auction suddenly appeared a very large seller.

Someone is trying to push through the order for 2000 BTC on Bitstamp. O_O

The situation on the market follow our cryptodata.

Go.

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