Bitcoin doing bitcoin things!
Today, Bitcoin had yet another moment like March 12, although the price didn’t crash that low.
#BTC crashes -$1000 in 15 minutes on US opening (exact same time and volumes as May 20 and May 21)
— PlanB 🔴 (@100trillionUSD) June 2, 2020
Yesterday, Bitcoin jumped as high as $10,430 and was trading above $10,100 when in a sudden move BTC went down hard to as low as $9,150 on Bitstamp, $9,300 on Coinbase, and $9,400 on Binance.
Bitstamp hit 9150, Coinbase hit 9300, Bybit hit 9300, Bitfinex hit 9150, FTX hit 9320 and Bitmex hit 8600.
Spot the odd one out…
— Nik Patel (@cointradernik) June 2, 2020
On BitMEX, which is notorious for offering 100x leverage on bitcoin contracts, BTC dropped 15% in a single candle, at a lower level of $8,600 just like it did on Black Thursday when Bitcoin tanked to $3,600 compared to $3,800 on other exchanges.
“The reason bitmex wicked so hard is because bitmex has the most OI, and it seemed the most highly leveraged OI,” said trader Loomdart.
Bitmex shennanigans. pic.twitter.com/Hs47IYur0I
— Alex (@classicmacro) June 2, 2020
In the past 24 hours, the amount liquidated was $992.68 million and 39,924 people. The largest single liquidation order occurred on BitMEX with a value of $10 million, as per CryptoDiffer.
The expensive lesson for noobs here was, “don't naked short or long bitcoin, or you will get burned on your stop losses.”
“That sort of rigorous selloff makes me think there are some big fish trapped in shorts or largely on the sidelines. Nevertheless they successfully trapped a lot of smaller fish in longs,” said trader Ledger Status.
As BTC price fell below $10,000, the buyer-taker volume was only 46 BTC while the seller-taker volume surpassed 1,500 BTC in just one minute, as per IntoTheBlock data.
“Trades Per Side measures buyer volume crossing the spread vs the seller volume crossing the spread.”
— Hsaka (@HsakaTrades) June 2, 2020
With this latest drop in price, now a “triple top” is in play with $7,900, $6,900-$7,500, and $5,100-$5,300 as the attractive areas to buy the dip.
on green candles: "fuck the pandemic, social unrest and the economy, buy $BTC!"
on red candles: "oh shit the pandemic, social unrest and the economy, nobody's gonna buy $BTC!"
— red (@redxbt) June 2, 2020
Interestingly, bitcoin’s drop has us retesting the curve chart the flagship cryptocurrency has been following and touched during the March sell-off. Now, we are carrying higher.
However, according to trader and investor Josh Rager, to be flat out bullish, bitcoin needs to print a weekly close above $10,400s. From there, we can make our move to new highs but until then this is just another lower-high.
Despite this 15% drop on BitMEX, bitcoin is at a level we were at yesterday, just having another failed attempt to break above $10,000 successfully. The losses in bitcoin also mean, “there's a CHANCE we see a real alt season” given that they are holding well.