(C) Reuters. Bitcoin (BTC) Technical Analysis: Bearish Reversal or a Much-Needed Correction? Here’s What You Need to Know
A $31 Million sell order placed during the Asian trading session at 03:00 (UTC+1), caused Bitcoin to shed over 22% of its recent bull market gains this morning. The flash crash, which saw BTC plummet almost $2,000, has been the largest sell off to take place so far this year.
Yesterday, the largest cryptocurrency by market capital was looking promising to continue its meteoric rise, as BTC recorded a new 10-month high at $8,390. At this stage however, Bitcoin was still dangerously close to its previous high of $8,340, which was achieved earlier in the week on May 14. Because of this, bulls were under increasing pressure to perform as fears of a double top were quickly spread throughout the crypto community.
A few hours later, Bitcoin reported its first dip below $8,000 as bull traders began to lose confidence and panic selling set in.
Right now, BTC is reporting a -8.23% drop against the US dollar. Bullish traders were quick to pushback against this morning’s crash, and have already managed to drive BTC back over the $7,200 mark.
Is this the start of a bearish reversal, or just a well-needed correction? Let’s take a look.
Bitcoin (BTC) Technical Analysis: Bearish Reversal or a Much-Needed Correction? Here’s What You Need to Know
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