Bitcoin price was trading in the green today, up about $1,500 at the high. The top cryptocurrency by market cap also made another attempt at $30,000 around mid-day.
Shortly thereafter, in the span of less than 60 minutes, BTCUSD flash crashed by more than 6%, leaving the marker bewildered. Here is a closer look at the sharp selloff and some potential reasons for the reset.
Bitcoin Price Bleeds 6% In 60 Minutes
Crypto market volatility is picking up and it’s doing so in a major way. Today alone, Bitcoin price was up by more than 6%, then saw the entire rally and then some wiped out in a nearly 7%, one hour long selloff.
Bulls who were gloating to start the day are now licking wounds and scratching their heads. Even bears aren’t sure what to think about today’s price action, it happened so quickly.
If recent lows at $27,000 don’t hold, today’s selloff could be the start of a second corrective wave down in BTCUSD. If the level does indeed hold, the move is more than likely the results of long positions in profit closing in succession, followed by stop losses being triggered who entered on the way up, wiping out open interest and resetting technical indicators.
What To Watch For: Shakeout Or Rejection?
The daily candle currently has a massive wick at the top and a decent-sized lower shadow, demonstrating the struggle between bulls and bears in today’s trading session.
Bitcoin price continues to find resistance at $30,000, and needs to press higher to convince the market that crypto winter is over. Rejection here could be disastrous for the top cryptocurrency by market cap. However, it is possible the move was merely a shakeout before continuation.
One thing is certain: this type of volatility should continue for the near term.