- Bitcoin experiences another unexpected major crash as the fate of crypto hangs in the balance.
- A look at liquidations as well as potential signs that could offer insights into BTC’s next move.
Bitcoin [BTC] has approached the end of the week with the return of strong volatility which has favored the bears. Capitulation after the previously observed consolidation resulted in sub $27,000 prices and a huge win for short traders. So, let’s take a look at what transpired.
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First things first, let’s look at Bitcoin’s latest price action. Selling pressure intensified after the price failed to bounce off its long-term support at the $29,000 price level. This suggested a breakdown of investor confidence after a period of low volatility and lateral price movement.
Bitcoin bears intensify their assault
The sell pressure particularly intensified in the last 24 hours during which it dipped as much as 8%. BTC dipped as low as $26,266 at press time after a period of intense sell pressure. This notably sends the price into oversold territory.
Source: TradingView
The selling pressure was initially fueled by long liquidations after the capitulation. We confirmed that this was the case after observing higher long liquidations than short liquidations since 15 August.
The long liquidations peaked at $329.82 million compared to $112.84 million in short liquidations in the last 24 hours.
Source; Coinglass
Long liquidations have significantly contributed to Bitcoin’s sell pressure. However, there was another major reason behind the selling pressure. It turns out that Ripple is the key denominator at the center of the latest market crash.
Bitcoin holders got spoofed following reports that the SEC just received the green light to file an appeal against the previous ruling that favored Ripple.
Can Bitcoin bounce back just as fast as its dip?
As previously noted, Bitcoin stood in an oversold position at press time. This alone could trigger a psychological wave of buying pressure. The substantial discount also meant that investors will want to take advantage of the lower price tag and this may explain the slight uptick observed from the lowest price point.
How many are 1,10,100 BTCs worth today
Some online chatter suggests that the latest dip could be the last major pullback before Bitcoin embarks on another major rally. While that remains to be seen, it is clear that some whales are already buying the dip.
Addresses holding over 10,000 BTC (denoted in yellow) have been adding to their balances as the selling pressure continued. This addresses category currently controls roughly 11.79% of Bitcoin’s circulating supply.
Source: Santiment
At the same time, some whales especially those in the 1,000 to 10,000 BTC (denoted in blue) have been contributing to sell pressure. This whale category controls roughly 24% of BTC’s supply hence the prevailing sell pressure. A Bitcoin ETF approval could be the next Hail Mary for Bitcoin holders.