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