Why Bitcoin Price Just Plummeted to $9,350, Liquidating $41 Million In Minutes

Tony "The Bull" Severino

5 years ago

3 mins read

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Bitcoin price just smashed through $9,500 after repeated tests, causing a flash drop to $9,350 that liquidated $41 million in long positions in just minutes.

Is this the start of a much deeper drop, or was this the test of support before Bitcoin rockets higher?

Bitcoin Price Plummets to $9,350 in a Flash

Bitcoin price has been in a confusing state, ranging back and forth between highs above $10,000 and support at $9,500.

But that support just failed, giving way to what could end up being a much deeper drop, and the end to the early 2020 rally.

The moment that support failed, Bitcoin plummeted to support at the monthly open around $9,350 before it began bouncing.

The drop to $9,350 also coincides with a high-volume node, making it prime target for short-sellers to target longs ready for the next move higher.

The market has been oversaturated with long orders since long before the 2020 rally even first began.

If Bitcoin moves further to the downside, a cascade of long liquidations could continue to drive the price of the first-ever cryptocurrency down at lightning speed.

With so many crypto traders bullish ahead of the halving, it could be an opportunity for contrarian crypto traders to turn the tides and keep prices at bay a while longer.

Price Targets to Watch In the Days Ahead

If $9,350 holds, it could be the final retest of monthly support before a push higher.

The latest move took BitMEX open interest down, although the metric still remains high, signaling that even more volatile price action is likely ahead.

The Bollinger Bands Width has been signaling that Bitcoin was soon going to “rip,” but doesn’t tell the direction it is headed.

After today’s swift move down, it could be the start of Bitcoin price ripping further to the downside, erasing much of the recent 2020 rally.

Downside targets include $8,250 and lower all the way down to $7,400. The $6,000 range likely won’t be revisited, much like Bitcoin never went back to the $3,000 range after it found its bear market bottom in late December 2018.

With Bitcoin’s halving ahead, any downside may be short-lived. The entire crypto market is expecting the cryptocurrency to explode to a new all-time high once the halving occurs, further reducing the supply of the already scarce asset.

After this latest drop, Bitcoin price will have more to climb towards setting a new record, as its already down over $1,000 from the local high it set this month.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.