What’s Next for Bitcoin After Crashing Hard to $8,030 Level?


  • BTC down 14% with altcoins in free fall
  • Apart from BitMEX liquidating $600 billion, the bloodbath could be Bakkt launch following ‘buy the rumor sell the news' on a “very large scale.”

Bitcoin price is crashing hard.

The leading cryptocurrency yesterday took a hit and dropped to $8,030 level, in a sudden and drastic move.

In the past 24 hours, BTC lost more than 14% of its value, while currently trading at $8,396, as per Coincodex. This has the trading volume shooting up to over $2.7 billion, which was down around $400 million last and earlier this week, as per Messari.

With Bitcoin dropping hard, altcoins are in free fall. Bitcoin Cash and Bitcoin SV both are the biggest losers with more than 20% losses.

While Ethereum is making its way to $150, XRP, although down only 6% in the ongoing bloodbath is now worth less than a quarter.

Source: Coin360

Total market cap has lost 15% of its value during this bloodbath while BTC dominance is at 70.87%, as per TradingView.

What Caused this Crash?

The plunge happened amidst the massive liquidation of long positions on the derivatives exchange, BitMEX. This liquidation of about $600 million in long position could have contributed to the drop.

“$600mln have been liquidated on BitMEX in last hour representing >50% of total open interest. An underwhelming Bakkt launch will probably be the ideal candidate to blame for the move,”

reported Skew Markets, a data analytics company.

Bakkt is a reason behind the drop according to eToro senior analyst, Mati Greenspan as well, who said this was all about, ‘buy the rumor sell the news' on a “very large scale.”

However, according to the former hedge fund manager and founder of crypto asset management firm, Travis Kling it’s the global macro effect — rate on overnight repo transactions soaring to record levels — on crypto.

The repo market situation is actually a symptom of a larger situation dubbed “dollar shortage,” he said.

What’s Next?

Crypto trader and investor Josh Rager says if Bitcoin fails to break above the current level, it would retest the support below at $7,800 and $8,100 zone that has bounced once and could hold.

“But if this isn't a bear trap I do see price heading down to low $7ks,”

he said before adding that lots of buyers are waiting between $6,180 and $6,500 area.

Analyst The Cryptomist is expecting to hit $7,200 in October that would come after one leg up that if we retest $8,200 first, could jump to $8,670 region.

According to Greenspan, the next levels of support should BTC break lower are $7,500, $6,200, $5,500, and $3,122 but not before adding,

“Of course, we're hoping for a nice bounce off this 200 Day Moving Average and take us #ToTheMoon!!”

Bitcoin (BTC) Live Price

1 BTC/USD =$41,419.6890 change ~ -3.83%

Coin Market Cap

$779.88 Billion

24 Hour Volume

$18.61 Billion

24 Hour VWAP

$42.08 K

24 Hour Change

$-1,584.56

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