Sorry Bitcoin bulls, bears seem to be back — at least for now.
For those who have not been pursuing Crypto Twitter or your favorite cryptocurrency price tracker over the past twenty minutes, the leading cryptocurrency has just suffered a massive short-term crash. As seen in this chart below from TradingView, after flatlining around the $10,200 range for a number of days, BTC suddenly fell off a cliff, losing the $10,000 support like it was nothing more than a fist going through a sheet of soggy parchment paper. Ouch.
As of the time of writing this, the cryptocurrency is trading at $9,800, having shed 4% in the past hour. Notably, Bitcoin is up by $200 from the daily low of $9,600.
This move has resulted in massive liquidation events for Bitcoin bulls on BitMEX and other platforms. Crypto analytics site Skew Markets shows that in the hour that BTC collapsed, at least $154.6 million worth of long positions were shed by the platform. This implies that many traders on the platform were leaning long, and thus expecting an upward breakout instead of this $500 cliff drop.
While this is surely harrowing, Bitcoin bulls are still insistent that the trend isn’t decidedly negative just yet. Bravado’s Bitcoin Birch recently said that descending volume and descending price is “bullish”.
Also, as prominent analyst Josh Rager wrote on his on Twitter, unless $9,400 is lost, he isn’t all too worried about Bitcoin’s upward trajectory. That level is, of course, where BTC will need to close above to maintain its consolidation pattern, per many analysts.