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%

Why Bitcoin price just flash crashed 6% after rejecting at $18.5K


19 Nov 2020

#Bitcoin

The price of Bitcoin (BTC) dropped sharply after approaching $18,500 on Binance and Coinbase. The plunge took place as large sell orders were spotted on both spot and futures exchanges. As Cointelegraph previously reported, traders anticipated a pullback as the price of BTC neared the $18,000 to $19,000 resistance zone. Upon its first retest of the area in nearly three years, the market saw a strong reaction.

Bitcoin confirms $18.5k as a key near-term resistance area. There are two main reasons why Bitcoin saw a swift drop near $18,500, and this caused other cryptocurrencies like Ether (ETH) to correct even harder.

First, the $18,500 level remains the biggest resistance level before a new all-time high above $20,000. Hence, it is a key area of interest for sellers to defend, as breaching $18,500 would raise the chances of a broader rally.

Second, an overwhelming majority of Bitcoin addresses are profitable as BTC tests an important resistance area. According to IntoTheBlock, 99% of BTC addresses are now in a state of profit. This raises the probability of a profit-taking-induced pullback.

There is a high probability that dips would get aggressively bought, based on BTC’s recovery in the past two hours. Following the initial drop to $17,214 on Binance, Bitcoin immediately recovered above $17,600.

The hourly chart of Bitcoin shows that the 20-day moving average (MA) hovers at $17,586. As such, if BTC remains comfortably above that level, the likelihood of a prolonged recovery increases.

Dan Tapiero, the co-founder of 10T Holdings, expressed confidence in Bitcoin’s medium-term outlook. He said that the “big boys” or the smart money would likely buy the dips. Referring to the weekly chart of Bitcoin, he wrote:

“Not often in life do you get to look at a chart like this one. #Bitcoin to slice through highs imminently. 3rd wave up to dwarf the 2017 move and should persist for several years. Real fundamentals driving price unlike ’17 speccy/ico retail flow. Big boys will buy dips now.”

Source


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.