Why Bitcoin price just flash crashed 6% after rejecting at $18.5K
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.”
Top Cryptocurrencies with Price Predictions
| # | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
| 1 |  BTC |
Bitcoin predictions | 82% | 27 | $63 873.61 | 4.81% | -3.95% | $1 257 512 886 768 |  |
|
|---|---|---|---|---|---|---|---|---|---|---|
| 2 |  ETH |
Ethereum predictions | 73.6% | 45 | $3 057.26 | 4.71% | -4.71% | $367 091 335 749 |  |
|
| 3 |  USDT |
Tether predictions | 93.6% | 1 | $1.000507 | 0.03% | 0.04% | $109 525 071 135 |  |
|
| 4 |  BNB |
Binance Coin predictions | 86.4% | 18 | $557.21 | 4.56% | -3.56% | $83 322 059 803 |  |
|
| 5 |  SOL |
Solana predictions | 71.6% | 51 | $143.10 | 8.89% | -4.19% | $63 940 828 587 |  |
|
| 6 |  USDC |
USD Coin predictions | 91.6% | 2 | $1.000083 | -0.01% | 0.02% | $33 903 831 306 |  |
|
| 7 |  XRP |
XRP predictions | 69.2% | 58 | $0.506493 | 6.41% | -6.13% | $27 922 549 313 |  |
|
| 8 |  DOGE |
Dogecoin predictions | 68.8% | 60 | $0.155824 | 9.08% | -7.92% | $22 431 951 008 |  |
|
| 9 |  TON |
Toncoin predictions | 67.6% | 64 | $6.08 | -4.60% | -5.49% | $21 104 413 915 |  |
|
| 10 |  ADA |
Cardano predictions | 68.8% | 60 | $0.478805 | 11.22% | -3.23% | $17 057 270 875 |  |
|
| 11 |  SHIB |
SHIBA INU predictions | 61.2% | 85 | $0.000023 | 8.73% | -3.71% | $13 607 840 037 |  |
|
| 12 |  AVAX |
Avalanche predictions | 70.8% | 60 | $35.07 | 7.88% | -7.93% | $13 255 813 221 |  |
|
| 13 |  STETH |
Lido stETH predictions | 92% | 1 | $2 941.39 | -0.40% | -3.32% | $10 258 752 564 |  |
|
| 14 |  WBTC |
Wrapped Bitcoin predictions | 81.6% | 32 | $63 910.16 | 5.31% | -3.88% | $9 930 600 077 |  |
|
| 15 |  DOT |
Polkadot predictions | 70.4% | 57 | $6.74 | 5.09% | -4.87% | $9 674 218 967 |  |
