Bitcoin
BTC$30 078.86

-3.11%

Ethereum
ETH$2 040.08

-4.19%

Tether
USDT$0.998945

-0.01%

USD Coin
USDC$1.000508

-0.02%

Binance Coin
BNB$299.90

-2.87%

XRP
XRP$0.427645

-3.01%

Bitcoin flash crashes by $2K in 5 minutes, liquidating $600M in longs


31 Mar 2021

#Bitcoin

A flash crash on short timeframes for BTC/USD induces panic among long traders, but for analysts, it's business as usual. Bitcoin (BTC) fell over $2,000 in five minutes on March 31 as a wave of volatility disrupted an otherwise calm market.

BTC sees sudden volatility

Cointelegraph Markets Pro and Tradingview showed a nightmare for long traders unfold on Wednesday, with BTC/USD suddenly dropping from $59,350 to $57,000. At the time of writing, the losses were still mounting after the pair hit lows of $56,713 on Bitstamp. 

"Exactly Bitcoin," trader Michaël van de Poppe reacted to what has become a familiar event on short timeframes for Bitcoin. Previously, upside had been the focus for day traders as news from PayPal spawned a run-up to just below $60,000.

Those betting on a continuation of the bull run lost big on Wednesday, however, as the downturn liquidated long positions worth $600 million amid a 24-hour total wipeout of $1 billion.

For quant analyst PlanB, their demise was nonetheless beneficial, helping to rid the market of unwanted leverage and ensure more organic future rises. As Cointelegraph reported, similar events have occurred with both long and short positions in recent months.

"Beautiful stop loss hunting .. again," he commented on Twitter. "Now that all leveraged longs are liquidated, we finally have room for breaking $60K in April."

Funding rates creep up

Meanwhile, indicators showed reason to believe that further price increases for Bitcoin would need some work. Funding rates across derivatives platforms were higher on the day, reaching as high as 0.375% on Huobi, a classic sign that downward pressure is incoming.

The longer-term picture remains more than positive, with analysts pointing to $68,000 and $73,000 as the next hurdles to watch.


Related

Has Bitcoin reached the bottom?
Has Bitcoin reached the bottom?
Bitcoin's Price Plunges Below $34,000
Bitcoin's Price Plunges Below $34,000
Bitcoin stabilised but has trouble to reverse strongly
Bitcoin stabilised but has trouble to reverse strongly
Bitcoin will fall until the bulls capitulate
Bitcoin will fall until the bulls capitulate
The culmination of the battle for the trend in Bitcoin
The culmination of the battle for the trend in Bitcoin
Bitcoin undecided on a scenario for May
Bitcoin undecided on a scenario for May
Bitcoin: How the $1 million rally begins
Bitcoin: How the $1 million rally begins
Bitcoin's last hope for $38K
Bitcoin's last hope for $38K
Bitcoin slips to the lows of the year
Bitcoin slips to the lows of the year

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 64% 68 $30 078.86 -3.11% -3.12% $572 752 759 821 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 64.8% 69 $2 040.08 -4.19% -10.99% $246 452 104 779 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94% 1 $0.998945 -0.01% -0.10% $75 672 207 650 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 92% 1 $1.000508 -0.02% 0.03% $51 903 555 902 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 69.6% 67 $299.90 -2.87% -3.10% $48 967 465 897 BNB 7 days price change
6 XRP (XRP) XRP XRP predictions 68.4% 65 $0.427645 -3.01% -14.63% $20 673 702 175 XRP 7 days price change
7 Cardano (ADA) ADA Cardano predictions 64% 69 $0.566998 -2.61% -10.70% $19 137 629 395 ADA 7 days price change
8 Solana (SOL) SOL Solana predictions 61.2% 80 $54.88 -3.41% -17.86% $18 502 523 504 SOL 7 days price change
9 Binance USD (BUSD) BUSD Binance USD predictions 94.4% 1 $1.001917 0.16% 0.06% $18 021 373 696 BUSD 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 67.2% 70 $0.088106 -3.91% -19.04% $11 689 066 228 DOGE 7 days price change
11 Polkadot (DOT) DOT Polkadot predictions 59.6% 80 $10.80 -6.53% -3.83% $10 663 415 500 DOT 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 62.4% 81 $33.64 -7.03% -24.96% $9 052 857 409 AVAX 7 days price change
13 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 69.2% 68 $30 052.34 -3.06% -3.49% $8 534 982 346 WBTC 7 days price change
14 TRON (TRX) TRX TRON predictions 69.2% 65 $0.069883 -2.03% -7.52% $6 832 451 366 TRX 7 days price change
15 SHIBA INU (SHIB) SHIB SHIBA INU predictions 63.6% 79 $0.000012 -4.41% -19.78% $6 682 885 305 SHIB 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.