Bitcoin broke below the $7000 and $6400 resistance and support level it had breached only some days ago. The corrective move doesn’t come much to the surprise of the traders. However, the percentage of the drop was massive around 20%; it exposed Bitcoin’s high volatility once again.
BTC/USD 4-Hour Chart on Bitstamp (TradingView)
The correction from the high was around $2,210 on Bitstamp Exchange down to $6178. Coinbase which doesn’t offer margin and futures trading recorded a low of $6600. The price of Bitcoin at hour UTC on 17th May 2019 is.
The market soon recovered, however, the long orders on Bitfinex seems to have capitulated to the fears of the bear. The expectations of $10,000 in the near future are low.
Interestingly, the short orders surrendered to a higher degree as Bitcoin started to break above $8350 just before the crash. Both short and long orders are consequently at monthly lows. Hence, people who looking to gain from shorting Bitcoin gave in to $10,000 fears as soon as Bitcoin started making a move upwards.
BTC/USD Long and Short Orders on Bitfinex (TradingView)
Vinny Lingham, chart and trade analyst weighed in on the crash. Lingham had confirmed that a break above $6400 would yield to bullish momentum. The chart stood true to his analysis, moreover, he maintained his bullish sentiments. He said,
“We’re in a Bitcoin recovery phase right now, since the $3100 bottom. Dips should be seen as good buying opportunities, unless we drop below the $6200 support level.” However,