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Lucky Buyers Possibly Bag $8K Bitcoin During Early Morning Flash Crash

Highly volatile cryptocurrencies like Bitcoin, Ethereum, and other altcoins can behave irrationally at any given moment, especially when turbulence strikes. But what happened this morning on the US branch of Binance, was shocking for even those who have seen flash crashes happen in real time.

The result of a massive wick left on the BTCUSD chart was a violent trip to $8,000 where coins were potentially exchanged for prices that are currently 87% lower than where Bitcoin is trading at right now. Here is a closer look at what went down, and what might have happened as a result.

Flash Crash On Binance US Takes BTC Back To $8,200

If you’ve been in crypto for some time, chances are you’ve heard some horror stories. Other users have lost funds due to hacks, sent funds to the wrong address, or worse. What few ever experience, however, is getting caught up in a flash crash.

Related Reading | Bitcoin Price Sets New All-Time High Above $65,000

We don’t mean a particular strong selloff, but a “flash crash” that sends the price of an asset diving so deep, it can often bring them back to close to zero.

While this morning Bitcoin price didn’t fall back to nothing, it did get a digit knocked off its price tag, and about 87% of the value per coin, according to the Binance US BTCUSD price chart.

The wick left behind on Binance US reached August 2020 levels | Source: BTCUSD on TradingView.com

The flash crash took the cost per BTC back to pre-bull market breakout levels from back in August 2020. It also was roughly an 87% fall from current prices, which was a larger drawdown percentage wise than the bear market from $20,000 to $3,200 at the low.

Bloody Bitcoin Wick Leaves Shock And Awe Behind

The hourly chart below is a better demonstration of how ridiculous the wick looked on lower timeframes as it was happening. The wick reached as low as around $8,200.

The hourly chart shows how deadline the wick was | Source: BTCUSD on TradingView.com

Any lucky Binance US users with a limit order ready to go could have gotten filled during the madness, which also means that some poor pleb could have sold their coins at a cost of $8,200 – significantly lower than the current price per Bitcoin, which just yesterday reached a new all-time high.

Related Reading | Bitcoin Price Prepares To Blast Off Back Into RSI “Bull Zone”

In the past, assets like Chainlink and even Ethereum have flash crashed down to nearly zero. Keeping orders ready on an exchange can take advantage of situations like the above. But these rare events aren’t predictable and can strike at any moment.

So which legend bought $BTC at $8000 today?

— Simon Dedic (@scoinaldo) October 21, 2021

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

Bitcoin (BTC) Price Prediction: BTC/USD Drops Sharply as Bitcoin Crashes to $41k

BTC/USD Is in a Deeper Correction as Bitcoin Crashes to $41k – December 4, 2021 Bitcoin (BTC) has plunged to the low of $41,000 as Bitcoin crashes to $41K. The cryptocurrency has declined to the September 28 historical price level of $41,064. BTC/USD is likely to face deeper correction as it falls to the low::Listen

BTC/USD Is in a Deeper Correction as Bitcoin Crashes to $41k – December 4, 2021

Bitcoin (BTC) has plunged to the low of $41,000 as Bitcoin crashes to $41K. The cryptocurrency has declined to the September 28 historical price level of $41,064. BTC/USD is likely to face deeper correction as it falls to the low of $48,442. Today, there is a long candlestick’s tail pointing to the $41,000 support level. The long candlestick’s tail is describing that the $41,000 support is a strong buying pressure.

Resistance Levels: $70,000, $75,000, $80,000
Support Levels: $50,000, $45,000, $40,000

BTC/USD – Daily Chart

Before the recent breakdown, Bitcoin was fluctuating between $56,000 and $59,000 price levels since November 29. However, in the last 48 hours, BTC price was compelled to consolidate in a tight range between $56,000 and $57,000. Perhaps, this tight consolidation must be responsible for the recent breakdown. The bears have broken below the $56,000 support to reach the low of $41,000. On the other hand, the bulls have bought the dips as BTC price makes an upward correction. The current breakdown is like a vertical tally not backed by fundamentals. Bitcoin is likely to recover if it breaks above $50,000 high or above the moving averages.

Bitcoin (BTC) Indicator Reading

BTC price has broken below the moving averages indicating a downward movement of prices. The king coin is at level 29 of the Relative Strength Index for period 14. Bitcoin is now in the oversold region of the market. The implication is that selling pressure has reached bearish exhaustion. Buyers will emerge in the oversold region to push prices upward. Bitcoin has a bearish crossover. That is, 21-day line SMA crosses below the 50-day line SMA indicating a sell signal.

   Bitcoin (BTC) Price Prediction: BTC/USD Drops Sharply as Bitcoin Crashes to $41k
BTC/USD – Daily Chart

Meanwhile, Bitcoin is in a downward move as Bitcoin crashes to $41K. Meanwhile, on November 26 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that BTC will fall to level 1.272 Fibonacci extension or $44,403.70.

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 Read more:
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•                        How to buy Bitcoin

Lucky Buyers Possibly Bag $8K Bitcoin During Early Morning Flash Crash

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