What Has Caused The Biggest Bitcoin Dump of The Year?

This is my thinking. I shared the SFP on the 17th, the wick below the previous swing low. We now have 2 more 4 hour candles with wicks below that line. That indicates there’s liquidity in that area. It could be fully tapped now, hence the lower orders in case. $BTC pic.twitter.com/uMhFbrq5Fs — The Wolf Of All Streets (@scottmelker) February 20, 2020

Speaking of liquidity, Datamish charts are reporting that over $150 million in longs were liquidated on BitMEX which caused the cascade of sell orders to be executed. BitMEX long liquidations – Datamish.com Failure to hold the $9,300 zone will see the asset fall into the high $8k area where there is further support. If this also fails to hold then BTC could be back at $8,200 pretty quickly which would result in a 20% correction. CNBC Counter Trader? CNBC’s ‘Fast Show’ has recently called bitcoin ‘red hot’ stating that it continues to climb higher which has historically been a counter trade indicator.

Bitcoin up more than 30% this year and Morgan Creek Capital’s @MarkYusko says this is why the red hot rally is just getting started $BTC pic.twitter.com/L6a9nrEWt7 — CNBC’s Fast Money (@CNBCFastMoney) February 19, 2020

When asked why it was down at the moment Morgan Creek Capital’s Mark Yusko said it didn’t really matter because it has been in similar situations before. His advice has always been ‘buy it and stack sats’ and that still applies today despite the plunge. Markets always correct after any sustained period of upward momentum so this is nothing to be concerned about. Even a move back to $8k would be normal for the asset but any lower may start ringing alarm bells. With stronger network fundamentals, weakening global economies, and an approaching halving, it will not be long before bitcoin is marching back upwards again. Where will the bitcoin correction stop? Add your price predictions below.

source: https://bitcoinist.com/what-has-caused-the-biggest-bitcoin-dump-of-the-year/

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