A minor Bitcoin '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.
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 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.
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.
