{"id":2095,"date":"2022-04-19T06:17:52","date_gmt":"2022-04-19T05:17:52","guid":{"rendered":"https:\/\/tradersofcrypto.com\/news\/?p=2095"},"modified":"2022-04-19T06:17:52","modified_gmt":"2022-04-19T05:17:52","slug":"bitcoin-btc-goes-for-flash-crash-fast-recovery","status":"publish","type":"post","link":"https:\/\/tradersofcrypto.com\/news\/bitcoin-btc-goes-for-flash-crash-fast-recovery\/","title":{"rendered":"Bitcoin (BTC) Goes for Flash Crash, Fast Recovery"},"content":{"rendered":"\n<p>Bitcoin (BTC) fell as low as $39,005 on Monday, later aiming to recover the $40,000 level. The day moved with extreme volatility, as BTC only took minutes to shift to $40,765.50, expanding the daily swing of volatility. A move like that can wipe out both long and short positions. BTC also expanded its market cap dominance to 41.1%. Later, BTC returned to its levels from the previous days, trading at $40,846.68.<\/p>\n\n\n\n<p>BTC fell under the $40,000 support level in a long-awaited backtracking. In the new week, BTC fell after the slow holiday weekend managed to keep some of the gains. After a rally at the beginning of the month, April is turning into a bearish month, not repeating the rally of 2021. BTC may also face uncertainty from macro factors, though for now it benefits as a tool against actual and expected inflation.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">5M chart on <a href=\"https:\/\/twitter.com\/search?q=%24btc&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$btc<\/a> caught this pump perfectly.<br><br>AO vs PA slope divergence.  Weak AO push down, longed green AO at the base of the green arrow.  Missed this trade but it was beautiful. <a href=\"https:\/\/t.co\/AK7EisIPDC\">pic.twitter.com\/AK7EisIPDC<\/a><\/p>&mdash; Wolf of #Bitcoin (@ExcelTrading1) <a href=\"https:\/\/twitter.com\/ExcelTrading1\/status\/1516125702411763716?ref_src=twsrc%5Etfw\">April 18, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>But the drop dragged down altcoins, pushing <a href=\"https:\/\/tradersofcrypto.com\/news\/ethereum-eth-delaying-eth-2-0-again\/\">Ethereum (ETH) under $3,000<\/a> briefly. The latest events were considered an example of a short-term fakeout, with the effect of sweeping out leveraged positions. The fast recovery showed BTC was still safe from a bigger dip. BTC for now held above the $38,000 level, which could break down to the $35,000-$32,000 range.<\/p>\n\n\n\n<p>This time, the relatively low price and a delayed rally still translates into ongoing accumulation of BTC. The lack of a rally to potential new highs is attracting long-term buyers that are aiming to lock in physical coins.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Total <a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> on exchanges has declined by 88,814 over the last month, with 29k being withdrawn from Coinbase alone on Thursday.<br><br>Aggregate <a href=\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#bitcoin<\/a> on exchanges at its lowest point since August 2018. <a href=\"https:\/\/t.co\/3miwNnv6CC\">pic.twitter.com\/3miwNnv6CC<\/a><\/p>&mdash; Dylan LeClair \ud83d\udfe0 (@DylanLeClair_) <a href=\"https:\/\/twitter.com\/DylanLeClair_\/status\/1515782130588131332?ref_src=twsrc%5Etfw\">April 17, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>In the past month, the market also saw an inflow of 2.7B Tether (USDT), which are still flowing into exchanges and at least supporting prices. The Bitcoin rainbow chart at this price suggests the asset is still cheap, on the verge of triggering another accumulation period.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Will the BTC ETF Matter<\/strong><\/h3>\n\n\n\n<p>The launch of a Bitcoin ETF is a secondary factor for price action. The US Securities and Exchange Commission has approved products based on BTC derivatives.&nbsp;<\/p>\n\n\n\n<p>The statement on a potential spot BTC ETF may come in June, with the goal of converting Grayscale\u2019s Bitcoin Trust into an ETF vehicle.&nbsp;<\/p>\n\n\n\n<p>Grayscale\u2019s vehicles trade at a discount to spot BTC, with a price of $29.01 per share. This translates into a much lower presumed BTC price based on the coins contained in each share. Grayscale trading at a premium has happened in the past, signaling more robust mainstream interest, which has now slowed down. Grayscale is also not an important source as more retail buyers learn to use wallets and hold BTC directly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why is BTC Falling<\/strong><\/h3>\n\n\n\n<p>One of the reasons is the expectation for attacking leveraged positions, which may extend the short-term slide. Short-term predictions see BTC revisiting $37,000, though there is caution in longing the asset even at that level. On Monday, there were signs of attacking short positions expecting a drop under $39,000.&nbsp;<\/p>\n\n\n\n<p>When BTC moved fast by a few hundred dollars, it was enough to liquidate $29.9B in value. More than 63% of <a href=\"https:\/\/tradersofcrypto.com\/exchanges\/binance\/\">trades on the Binance futures exchange<\/a> caused short liquidations. The small bounce close to $40,000 also erased open interest as derivative trading turned even more cautious.\u00a0<\/p>\n\n\n\n<p>In a day, the Crypto Fear and Greed Index slid from 28 to 24 points, signaling the increasing caution and expectations of more rapid price moves in either direction.&nbsp;<\/p>\n\n\n\n<p>BTC trading volumes, as predicted, rose to their usual weekday levels above $30B in 24 hours, while USDT trading was again above $60B in 24 hours. Stablecoins encompass multiple assets, causing anomalous rallies.&nbsp;<\/p>\n\n\n\n<p>In a best-case scenario, BTC is close to bottoming out, after erasing nearly 20% of its value in a short time span. Still, there are indicators for BTC entering a zone of risk with more uncertainty.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Can Altcoins Drive the Recovery<\/strong><\/h3>\n\n\n\n<p>Altcoin traders may also turn to caution, as smaller assets also go through more dramatic corrections. Within days, <a href=\"https:\/\/tradersofcrypto.com\/news\/how-terra-luna-is-becoming-the-biggest-holder\/\">Terra (LUNA)<\/a> retreated from its recent rally and dipped to $85. <a href=\"https:\/\/tradersofcrypto.com\/news\/solana-sol-leads-tentative-recovery\/\">Solana (SOL)<\/a> also stopped its trek and is now barely above $100.\u00a0<\/p>\n\n\n\n<p>Avalanche (AVAX) stagnated above $75 as the market moved on from the news of recent partnerships and boosted stablecoin liquidity.&nbsp;<\/p>\n\n\n\n<p>Monero (XMR) was an outlier as the coin gained more than 14% week-on-week while other assets moved sideways or down.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">XMR\/USD WEEKLY CHART.<a href=\"https:\/\/twitter.com\/hashtag\/Monero?src=hash&amp;ref_src=twsrc%5Etfw\">#Monero<\/a> has just pushed up higher over the past two weeks. <br><br>Price is now pulling back into year long support\/resistance. <br><br>If <a href=\"https:\/\/twitter.com\/search?q=%24XMR&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$XMR<\/a> holds these lows, then a run back to $340 and then all time highs at $500 is on the cards. After that anything is possible. <a href=\"https:\/\/t.co\/OjvTEgxCV5\">pic.twitter.com\/OjvTEgxCV5<\/a><\/p>&mdash; John Foss (@johnfoss69) <a href=\"https:\/\/twitter.com\/johnfoss69\/status\/1515998149550100481?ref_src=twsrc%5Etfw\">April 18, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>XMR has spent a long time away from its higher valuations and may attempt to become an influential asset again. XMR rallied to a peak at $264.09 for the day, later retreating to about $255. XMR started its expansion last month, moving up from just under $200.<\/p>\n\n\n\n<p>ZCash (ZEC), another anonymous-type coin, rallied to $150.59. ZEC bounced from a one-month low, with the potential to recover the $200 level. ZEC reawakened after recent mentions from Grayscale Capital on the potential return of privacy coins.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) had a down and up again flash trade on Monday, again wiping out leveraged positions. <\/p>\n","protected":false},"author":3,"featured_media":2096,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[12,6,157],"class_list":["post-2095","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorised","tag-btc","tag-eth","tag-luna","entry"],"_links":{"self":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/posts\/2095","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/comments?post=2095"}],"version-history":[{"count":0,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/posts\/2095\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/media\/2096"}],"wp:attachment":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/media?parent=2095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/categories?post=2095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/tags?post=2095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}