Price Crashes Over $400 in a Matter of Hours
Bitcoin’s Price Crashes Over $400 in a Matter of Hours Mark June 12, 2017 Crypto, News bitcoin stock crash
It seems that only yesterday Bitcoin was inching towards $3000 and a new all time high was incoming. However, as the beginning of the week hit, Bitcoin’s price drastically crashed over $400 in a matter of hours, signifying a 15% drop in price setting back traders a few weeks.
While such a dramatic drop is never good, it is important to keep it in perspective. It was only two weeks ago that the price was at $2500, meaning recovery is not unlikely. Along with Bitcoin, Ethereum crashed as well after briefly touching $420 on many exchanges. Such a correction was imminent for both cryptocurrencies because their price has diverted too far from any technical analysis indicators.
It is speculated that Okcoin’s liquidation of long positions attributed to the negative market pressure. According to @WhaleCalls – a bot powered bitcoin market reporter – the exchange liquidated thousands of positions at the price of roughly $2500.
HomeNewsCryptoBitcoin’s Price Crashes Over $400 in a Matter of Hours
Bitcoin’s Price Crashes Over $400 in a Matter of Hours Mark June 12, 2017 Crypto, News bitcoin stock crash
It seems that only yesterday Bitcoin was inching towards $3000 and a new all time high was incoming. However, as the beginning of the week hit, Bitcoin’s price drastically crashed over $400 in a matter of hours, signifying a 15% drop in price setting back traders a few weeks.
While such a dramatic drop is never good, it is important to keep it in perspective. It was only two weeks ago that the price was at $2500, meaning recovery is not unlikely. Along with Bitcoin, Ethereum crashed as well after briefly touching $420 on many exchanges. Such a correction was imminent for both cryptocurrencies because their price has diverted too far from any technical analysis indicators.
It is speculated that Okcoin’s liquidation of long positions attributed to the negative market pressure. According to @WhaleCalls – a bot powered bitcoin market reporter – the exchange liquidated thousands of positions at the price of roughly $2500.
This isn’t the first or the last time that Okcoin’s liquidation has caused massive movements in the market, that is an inherent problem with margin trading, as at some point the liquidations hit and create unsustainable pressure on the market, causing it to correct.
There have been no recent negative news which should be a cause for a panic sell, meaning that the current price action just seems like a product of traders’ speculation. China and Japan are still buying Bitcoin like crazy and we can see that because of the existing premium in coin prices.