Cryptocurrency market and stability are opposite things, as many of you know, right? 🙂 Another sudden move of BTC and Altcoins flashed yesterday. Many coins lost an average of about 10-15% of the price, some of them about 20%.
*Let’s check what hyips are most prepared and feel stable in both pumps and dumps moments of cryptocurrencies..
Well, this is not the first and certainly not the last time we have seen such extreme volatility. Maybe over time we will see a more stable picture of this market.
Below you will read some information about this sharp downward movement:
Traders were caught flat-footed on Sept. 7 after a sharp collapse in the price of Bitcoin (BTC) saw the digital asset fall below $43,000, and this led to widespread liquidations in derivative markets as more than $3.54 billion was liquidated.
Amount of Liquidations in the past 24 hours by exchanges in total $3.54 was liquidated!
In the past 24 hours, 330,243 traders were liquidated. The largest single liquidation order happened on @HuobiGlobal#BTC$BTC value $43.7M
Bullish sentiment had been on the rise coming out of the Labor Day holiday weekend in the United States because Bitcoin was officially recognized as legal tender in El Salvador, but the celebration was quickly extinguished by BTC’s 16% plunge.
Data from Cointelegraph Markets Pro and TradingView shows that the sell-off in BTC began during the early trading hours and accelerated into midday as the price of Bitcoin fell to a low of $42,837 before dip buyers arrived to bid it back above $46,500.
Here’s what traders are saying about this rapid sell-off and what to be on the lookout for as the market attempts to digest the chaos of the day.
Longs are heavily liquidated as BTC sells off
A fact-focused analysis of the current state of the market was offered by on-chain analyst Willy Woo, who posted the following tweet outlining Sept. 7’s developments.
Day opened with equities risk-off.
Some sell down of BTC.
Medium levels of fundamental inflows (selling).
Then stop hunt / liquidity collapse.
$1.1b of BTC liquidations.
Overall unsupported by investor fundamentals on-chain.
As noted by Woo, the wider financial markets opened the day risk-off, which put pressure on the crypto market that cascaded as the day progressed.
The ensuing sell-off resulted in $1.1 billion worth of Bitcoin liquidations, but on-chain data does not suggest that investors are in a rush to close their positions, and the most recent activity shows that exchanges are back in buying mode.
A follow-up tweet from Woo shows just how unexpected Sept. 7’s move in the market was, a good reminder that risk management is always something to keep in mind in the crypto market.
Woo said:
“Not entirely sure WTF just happened, but that’s the sequence of events. The sell-off was mainly on derivative markets (like most crashes).”
Possible outlier detected
Further analysis of Sept. 7’s move in Bitcoin was provided by market analyst and Cointelegraph contributor Michaël van de Poppe, who also highlighted the role that overleveraged traders played in the day’s price action.
#Bitcoin lost that $49K level as crucial support and smacked through it.
What just happened?
Overleveraged positions getting liquidated in a chain reaction, causing a massive wick.
If this wick closes above $47/48K, it will be an outlier.
According to Poppe, if BTC can manage to close above the $47,000–$48,000 range following this pullback, the move will be considered an outlier to the previously established trend and a good buying opportunity, should the uptrend resume.
Not all traders were caught off guard
Not all participants in the market were caught unaware by Sept. 7’s downside move, as highlighted in the following tweet posted by analyst and pseudonymous Twitter user Crypto_Ed_NL.
Feeling lucky you did not get liquidated in that corrective move earlier today? Wait with getting new, dry pants…might not be over yet! pic.twitter.com/DIp9USNfK7
