chepicap.com
Just a few hours ago Bitcoin and the wider cryptocurrency market received a sudden shock as Bitcoin plummeted from around $7800 to $7200 within 20 minutes across major exchanges including Coinbase, Bitfinex, Gemini and Bittrex. The worst of the pain was felt on Bitstamp with the exchange reporting a flash crash down to $6,200. So what happened? And where is Bitcoin going next?
Why did Bitcoin dump?
Bitstamp appears to be the quasi-patient zero today as reports relay that a 5000 BTC sell order swept the market into panic mode.
According to speculation, The order was set at the quizzically low price, causing the market to correct and initiating a domino effect from market to market throughout the crypto ecosystem.
5K BTC dump on Bitstamp. Woah horsey!
— Pat (@PatCrypt) October 5, 2014
While other exchanges weren’t as affected, the impact still hit hard, with most reporting a loss for BTC of $600.
BTC managed to regain some stability in the time since the dump, currently standing at a price of $7320
BTC/USD Chart provided by Tradingview
This is what happened
— Dovey Wan 🗝 🦖 (@DoveyWan) May 17, 2019
1. A jackass put up an aggregated sell of 5000 $BTC on stamp
2. Stamp poor depth + algo glitch?
3. Bmx index is 50% on stamp
4. Massive Bmx liq tanked the mkt
5. Despite all ☝🏻BTC quickly bounced back to $7000
This might be the best chance to BTFMD
What’s next for Bitcoin?
Luckily this dump doesn’t seem to be the end for Bitcoin as the price bounced back fairly quickly shortly after the dip, presumably thanks to multiple buy orders down near $6K.
Interestingly, Josh Rager, a prominent crypto trader noted that the sell-off provided some bullish insight, with the CME futures gap filled:
$BTC - CME Futures Gap officially filled
— Josh Rager 📈 (@Josh_Rager) May 17, 2019
Looks like that was the dip to buy
This is very bullish pic.twitter.com/hYCRMKUj2i
Its been previously suggested that the gap in the CME futures would provide a crash due to the necessity of filling the gap:
❗️I want to remind you that there is a GAP on Bitcoin CME Futures Chart. Its bottom line is located at the $6420. This time the gap is very big, to close one Bitcoin needs to dump for 20%. Interesting what will happened, but remember - CME closes its gaps in 9/10 cases. pic.twitter.com/S3Pmqp7sT1
— Klondike (Crypto Rush) (@KlondikeRush) May 16, 2019
With this gap filled and the subsequent bounce which followed it appears the worst of the bearish sentiment is over, and BTC may be able to continue higher.
What you think is next for BTC? Will we see another correction or can BTC continue on its parabolic journey to the top?
Let us know your thoughts in the comments!
Bitcoin to $10 likely! This is what it takes to get there Subscribe to the Chepicap YouTube Channel for more videos!