$2K Bitcoin Flash Crash Triggers a Wave of Long Liquidations

A minor Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term 'flash crash' on Wednesday caused BTC to fall roughly $2000 in five minutes, triggering a wave of liquidations. According to CoinTelegraph, the crash from $59,350 to $57,000 was somewhat unusual on an otherwise calm day in crypto markets.

The flash crash was bad news for long traders. The crash, which lasted just over an hour, caused liquidations of long positions worth some $600 million. Over the 24-hour period preceding the crash, crypto markets saw a total wipeout of $1 billion.

Exactly #Bitcoin. pic.twitter.com/OpB5Z3jWba

— Michaël van de Poppe (@CryptoMichNL) March 31, 2021

The flash crash was a disruption in the bullish run that Bitcoin has enjoyed this week after news of Paypal and Visa entering the crypto sphere in more serious ways.

Quant analyst PlanB wrote on Twitter that the crash helped to eliminate unwanted Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term in the markets, and therefore may have been ultimately healthy for Bitcoin. “Beautiful stop loss hunting... again," PlanB wrote on Twitter. "Now that all leveraged longs are liquidated, we finally have room for breaking $60K in April."

What Will Bitcoin’s Next Move Be?

But, could Bitcoin really break $60K in April? Many analysts seem to agree that it is possible. However, the short-term path forward is a bit unclear.

#bitcoin's about to close its 6th consecutive green monthly candle. The last time that happened on bitstamp (longest price history) was in 2013, which was followed by a 75% pullback. Question from here is - Do we go parabolic on a breakout above $60k or see a pullback in April? pic.twitter.com/gwq6H0MuyE

— Chris Dunn (@ChrisDunnTV) March 30, 2021

CoinTelegraph reported that: “funding rates across derivatives platforms were higher on the day, reaching as high as 0.375% on Huobi, a classic sign that downward pressure is incoming.”

However, if Bitcoin can manage to break through its most recent all-time high, some analysts agree that BTC could go parabolic. Earlier today, Finance Magnates reported that $73,000 and $92,000 will become Bitcoin’s next 'points of interest' if the price breaks above its current all-time high of roughly $61,000.

#Bitcoin

- No, this bull-run isn't close to being over
- Yes, the insanity for Altcoins yet have to come pic.twitter.com/bN5CCYca3f

— CryptoAmsterdam (@damskotrades) March 31, 2021

Approximately three hours after the flash crash began, Bitcoin appeared to be on the road to recovery. At press time, BTC was changing hands at $58,276.40.