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.”
Top Cryptocurrencies with Price Predictions
| # | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | Volume 24h | |
| 1 |  BTC |
Bitcoin predictions | 86.4% | 18 | $47 925.68 | 0.68% | 6.58% | $901 951 445 458 | $27 919 462 130 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2 |  ETH |
Ethereum predictions | 76% | 50 | $3 423.11 | 0.38% | 5.21% | $402 491 721 391 | $15 553 045 416 | |
| 3 |  ADA |
Cardano predictions | 67.2% | 67 | $2.37 | 0.38% | -7.94% | $75 823 653 054 | $2 080 207 302 | |
| 4 |  BNB |
Binance Coin predictions | 68.8% | 70 | $410.57 | 0.26% | 2.36% | $69 032 640 296 | $1 283 622 699 | |
| 5 |  USDT |
Tether predictions | 96% | 1 | $1.000627 | 0.04% | 0.04% | $68 335 359 250 | $59 329 429 542 | |
| 6 |  XRP |
XRP predictions | 72.4% | 59 | $1.078025 | 0.61% | 0.96% | $50 259 931 930 | $2 252 778 370 | |
| 7 |  SOL |
Solana predictions | 57.6% | 90 | $167.50 | 13.39% | -4.91% | $49 743 317 996 | $5 600 026 562 | |
| 8 |  DOT |
Polkadot predictions | 59.2% | 81 | $34.32 | 2.31% | 8.72% | $33 890 426 406 | $1 838 398 069 | |
| 9 |  DOGE |
Dogecoin predictions | 62.8% | 75 | $0.241065 | -0.37% | 0.25% | $31 660 952 487 | $981 852 553 | |
| 10 |  USDC |
USD Coin predictions | 93.2% | 1 | $1.000557 | 0.03% | 0.03% | $29 403 262 185 | $2 112 261 871 | |
| 11 |  AVAX |
Avalanche predictions | 64.8% | 69 | $69.31 | -5.01% | 25.67% | $15 268 911 437 | $1 827 693 735 | |
| 12 |  UNI |
UniSwap predictions | 71.6% | 63 | $24.33 | -0.87% | 8.50% | $14 880 383 376 | $283 300 955 | |
| 13 |  LUNA |
Terra predictions | 68% | 64 | $35.04 | 0.38% | -9.65% | $14 075 024 420 | $740 942 492 | |
| 14 |  LINK |
Chainlink predictions | 74.4% | 52 | $28.27 | 1.53% | 5.94% | $12 820 613 105 | $1 032 467 819 | |
| 15 |  BUSD |
Binance USD predictions | 94.4% | 1 | $1.000531 | 0.04% | 0.04% | $12 820 356 340 | $4 823 361 344 |
