The sudden Bitcoin price drop did not catch some crypto traders unprepared. While the scenario affected almost all digital currencies, some assets remained unmoved throughout.
Regarding the latest Bitcoin’s retracement to 8,600 after the digital asset reached $9170, Netherlands-based crypto analyst, who works full time at Amsterdam Stock Exchange, Michael van de Poppe, known on social platform as Crypto Michael, had predicted the sudden Bitcoin liquidation, two hours before it came to pass.
Not long after BTC broke above $9,000, Crypto Micheal said it was a good sign , however, he did mention that the chart would soon create “a CME gap”.
He said if Bitcoin lost the $9,000 support zone, the bearish divergences would be applied, making BTC to aim either $8,250 or $8,600 as main long zones.
The first expected Bitcoin price drop has come to pass, as Bitcoin is trading around $8,600 level. However, the second scenario has not played out.
Shortly after the 3 minutes price drop, which saw BTC retest $8400 zone, Crypto Micheal said Bitcoin will also see a bearish retest at $8,800-8,850, and the digital asset will see a move down to $8,250.
He said, “That’s my main zone to watch,” adding that “holding there would be wonderful.”
We broke above $9,000, that's a good sign. But we'll be creating a CME gap through that.
If we lose $9,000, the bearish divergences are applied and I aim $8,250 / $8,600 as main long zones.
Another wick first in $9,400 is also on the table.
Just a scenario. pic.twitter.com/jBlkePjc19
— Crypto Michaël (@CryptoMichNL) January 19, 2020
One of the most surprising Bitcoin price drop happened to today, at least, some of those who joined the train lately might not have experienced this kind of volatility before.
However, today, Bitcoin saw a price drop of 5.6% within three minutes, forcing the digital currency to stay below $9,000 up till this moment.
The heavy liquidation which caused an unexpected Bitcoin price drop was revealed to be caused by some whales on Deribit futures & options exchange.
Some unnamed crypto holders sold 101M worth of Bitcoin (BTC) perpetual contracts around 11:00. The action was greeted by a massive price drop, which made Bitcoin lose over $600.
This reflects that what happened to Bitcoin and the entire cryptocurrency market came from some Deribit traders who decided to shot at will.