Bitcoin Price Drops 10% In This Three Day Crash to $6,425, What’s Next?
- BTC price tanks 10% before going back to $6,700
- BTC/USD Longs on Bitfinex Going Insane
- Traders say $5,500 coming but when?
On its third day of continued crashing, Bitcoin price went down to $6,425, today’s lowest level. This marks a fall of over 10% during this 3-day period. As such, the 30-day volatility has started to slowly point upwards again.
However, it's to be seen if this uptick in volatility will be the start of a large volatility change in the world’s leading cryptocurrency. This volatility has the trading volume surging to $474.2 million, up from $150 million on the weekend.
However, we are now making our way back up to $6,700.
BTC/USD Longs on Bitfinex Going Insane
Bitcoin price might be crashing but BTC longs on Bitfinex continues to add up. The long positions on Bitfinex started skyrocketing on Nov. 23 and are showing no sign of stopping.
The BTC/USD longs chart is looking insanely scary. Since Nov. 21st, more than 97% more longs have been added. There are now about 45,000 long positions on Bitfinex, which is a new all-time high. Meanwhile, the number of short positions are at just above 8,500, also up 96% in the past three days.
This kind of activity, however, isn’t seen on any other platforms like Binance and BitMEX where traders are actually net short. While BitMEX offers 100x leverage and Binance 125x, Bitfinex offers only 3.3x which means they will be less prone to liquidations.
But in the past, these high levels have led to liquidations of longs and a drop on BTC price.
There is no definite answer for what’s behind these positions. It could be someone hedging, opening their short positions on another platform or these traders are long-term optimistic and seeing the drop as a buying opportunity.
But the ongoing drop might not stop here. Analyst Jacob Canfield sees $5,500 coming for the Bitcoin price.
Veteran trader Peter Brandt has the same target but according to him, this won’t be coming until July 2020.
$5,500 in July 2020
— Peter Brandt (@PeterLBrandt) December 17, 2019
The market sentiments, however, have already turned to “extreme fear,” with the Crypto Fear & Greed Index pointing a reading of 15 on a 0 to 100 scale, with 0 being extreme fear and 100 extreme greed.
Investors are getting more and more nervous while others are following Warren Buffett’s be “Fearful when others are greedy and greedy when others are fearful.”
I bought more Bitcoin today
— Bill Pulte (@pulte) December 17, 2019
Also, as the prominent analyst PlanB points out, this is nothing out of the ordinary. BTC price follows the stock-to-flow model but greed and fear cause a few ups and downs which aren’t anything new.
— PlanB [Jan/3➞🔑 ] (@100trillionUSD) December 17, 2019
Are you using this dip in BTC price and stacking the sats as well?