Good things don’t last forever it seems. After rallying 20% from the lows to tap $10,000, Bitcoin plunged $500 within the span of 20 minutes this hour, falling from ~$9,750 to $9,200 in that short period of time.
It was an 8% reversal from the ~$10,000 highs of the Thursday trading session.
Bitcoin price chart of the recent rally and dump from TradingView.com
Few expected such a crash.
After pushing past resistance level after resistance level in the $8,000s and $9,000s, analysts were convinced BTC was poised to break into yet another full-blown bull trend. But this drop negates that sentiment, at least for the time being.
According to data shared by Skew.com, a crypto derivatives platform, approximately $28 million worth of BitMEX long positions were burned during this move. This comes after smaller bouts of $1-10 million liquidations per hour over the past two days as Bitcoin rallied higher.
BitMEX’s Bitcoin liquidation data compiled by Skew.com
What Analysts Are Thinking About Bitcoin
As this move transpired just minutes ago, few analysts have reacted to the move.
But other analysts have made comments recently that still hold relevance today.
One top cryptocurrency analyst recently said:
“No break in market structure by my rules yet on the 1D. Close below $8529 and 1D flips bearish and first target is $7.8k. Break back above $9.5k and I’m gunning for new highs > $10.5k,” the analyst shared in reference to the chart below.
Price chart from HornHairs (@CryptoHornHairs on Twitter), a popular cryptocurrency trader.
What they’re saying is if Bitcoin can hold $9,500 on a notable time frame (the daily chart+) after the $500 dump, the cryptocurrency’s bullish market structure remains intact.
Adding to this, analysts are certain that Bitcoin’s long-term outlook remains bullish.
Per previous reports from NewsBTC, one analyst shared that the cryptocurrency looks “clear for liftoff.”
“Bitcoin weekly Heikin Ashi looks clear for liftoff,” the analyst said in reference to a series of green Heiken Ashi candle prints for BTC, indicating a bull trend.
Featured Image from Unsplash
