- Bitcoin is experiencing another unexpected major crash as the fate of crypto hangs in the balance.
- A look at liquidations and possible signs that could provide insight into BTC’s next move.
Bitcoin [BTC] approached the end of the week with the return of strong volatility that favored the bears. Capitulation after the previously observed consolidation resulted in prices below $27,000 and a huge win for short traders. So let’s see what happened.
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First, let’s take a look at the latest Bitcoin price action. Selling pressure intensified after the price failed to bounce off its long-term support at the $29,000 price level. This suggested a collapse in investor confidence after a period of low volatility and lateral price movements.
Bitcoin bears intensify their attack
Selling pressure particularly increased in the past 24 hours, during which it fell as much as 8%. BTC fell to $26,266 at the time of writing after a period of intense selling pressure. Specifically, this drives the price into the oversold area.
Source: TradingView
Selling pressure was initially fueled by protracted liquidations after the capitulation. We confirmed this was the case after seeing more long than short liquidations since August 15.
Long liquidations peaked at $329.82 million compared to $112.84 million in short liquidations in the past 24 hours.
Source; Mint glass
Prolonged liquidations have contributed significantly to Bitcoin’s selling pressure. However, there was another major reason behind the selling pressure. As it turns out, Ripple is the main denominator at the center of the latest market crash.
Bitcoin holders were spoofed after reports that the SEC had just been given the go-ahead to appeal the earlier ruling in favor of Ripple.
Can Bitcoin bounce back as fast as its dip?
As noted earlier, Bitcoin was in an oversold position at the time of writing. This alone could set off a psychological wave of buying pressure. The significant discount also meant that investors want to take advantage of the lower price tag and this could explain the slight increase seen from the lowest price point.
How much are 1,10,100 BTC worth today
Some online chatter suggests that the latest dip could be the last major pullback before Bitcoin embarks on another major rally. While that remains to be seen, it’s clear that some whales are already buying the dip.
Addresses with more than 10,000 BTC (indicated in yellow) have replenished their balances as the selling pressure continued. This category of addresses currently controls about 11.79% of Bitcoin’s circulating supply.
Source: Sentiment
At the same time, some whales, especially those in the 1,000 to 10,000 BTC range (indicated in blue), have added to the selling pressure. This whale category controls about 24% of BTC’s supply, hence the prevailing selling pressure. A Bitcoin ETF endorsement could be the next Hail Mary for Bitcoin holders.