Bitcoin price was trading in the green today, up around $1,500 at its high. The top cryptocurrency by market cap also attempted to raise $30,000 around noon.
Soon after, in the span of less than 60 minutes, the BTCUSD flash crashed by more than 6%, leaving the marker stunned. Here’s a closer look at the sharp sell-off and some possible reasons for the reset.
Bitcoin price bleeds 6% in 60 minutes
The volatility of the crypto market is increasing and doing so in a major way. Today alone, Bitcoin price was up more than 6%, then the whole rally took place and then wiped out some of it in an hour-long sell-off of nearly 7%.
Bulls that beamed to start the day are now licking wounds and scratching their heads. Even bears are not sure what to make of today’s price action, it happened so fast.
If the recent lows of $27,000 fail to hold, today’s selloff could mark the start of a second corrective wave in BTCUSD. If the level does indeed hold, the move is more than likely the result of successive long positions in profit closes followed by stop losses being triggered that came in on the way up, wiping out open interest and resetting technical indicators.
6%+ in under 60 minutes | BTCUSD on TradingView.com
What to look for: shakeout or rejection?
The daily candle currently has a huge wick on the upside and a decent bottom shadow, demonstrating the battle between bulls and bears in today’s trading session.
Bitcoin price continues to find resistance at $30,000, and needs to push higher to convince the market that the crypto winter is over. Rejection here could be disastrous for the top cryptocurrency by market cap. However, it’s possible that the move was just a shakeout before continuing.
One thing is certain: this kind of volatility should persist in the near term.
