Bitcoin Plunge Through $9,600 Liquidates $144 Million in BitMEX Longs
The victors of the latest tussle between bulls and bears have been decided. In the past hour, the Bitcoin (BTC) price has plunged, with the cryptocurrency losing key support at $10,000 and $9,800 within a few minutes’ time.
As of the time of writing this piece, BTC is trading at just a smidgen under $9,700, having lost 4% in the past 24 hours.
According to data from Skew Markets, a crypto market analytics service, this collapse has resulted in a massive liquidation event. In fact, the 4% collapse in the Bitcoin price wiped out $150 million worth of long positions on the platform. Shorts have been mostly unaffected by this move, as Bitcoin has yet to bounce.
This massive event implies that a majority of crypto traders were leaning long on higher leverages, and thus lost their shirts when Bitcoin shed hundreds in mere minutes.
— Boxmining (@boxmining) August 28, 2019
Due to the fact that this move occurred under one hour ago, the crypto analysts on Twitter are still struggling to pick up the pieces.
Importantly, Bitcoin’s move to $9,600 might have violated a call made by Murad Mahmudov of Adaptive Capital. As NewsBTC reported previously, the prominent analyst wrote on Twitter that Bitcoin is most likely to test $9,750 the 0.618 Fibonacci Retracement of this whole cycle in the following month in a bout of sideways price action, then “continue steadily upwards” to around $20,000 by year’s end.
If Bitcoin manages to bounce from here, Mahmudov’s prediction may not be validated, however.
What Dumped Bitcoin?
According to analysis from The Crypto Monk, this sell-off may stem from a suspicious trade that occurred a number of hours ago. He wrote that the suspicious $120 million BitMEX buy wall that appeared on Wednesday morning was likely a way for a large seller to “sustain the price while unloading.”
A few hours ago, there was a $120M buy wall on Bitmex.
Obviously someone trying to unload some corn. 📉🌽
Don’t get caught with your pants down.
— The Crypto Monk ⛩ (@thecryptomonk) August 28, 2019