The victors of the latest tussle between bulls and bears have been decided. In the past hour, the Bitcoin (BTC) price has plunged, with the cryptocurrency losing key support at $10,000 and $9,800 within a few minutes’ time.
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As of the time of writing this piece, BTC is trading at just a smidgen under $9,700, having lost 4% in the past 24 hours.
According to data from Skew Markets, a crypto market analytics service, this collapse has resulted in a massive liquidation event. In fact, the 4% collapse in the Bitcoin price wiped out $144 million worth of long positions on the platform.
This massive event implies that a majority of crypto traders were leaning long on higher leverages, and thus lost their shirts when Bitcoin shed hundreds in mere minutes.
$144m in longs wiped. $XBT $BTC @skew_markets pic.twitter.com/Go7DULP8Ki
— Trajan (@trajanmex) August 28, 2019
Due to the fact this move occurred under one hour ago, the crypto analysts on Twitter are still struggling to pick up the pieces.
Importantly, Bitcoin’s move to $9,600 might have violated a call made by Murad Mahmudov of Adaptive Capital. As NewsBTC reported previously, the prominent analyst wrote on Twitter that Bitcoin is most likely to test $9,750 — the 0.618 Fibonacci Retracement of this whole cycle — in the following month in a bout of sideways price action, then “continue steadily upwards” to around $20,000 by year’s end.
If Bitcoin manages to bounce from here, Mahmudov’s prediction may not be validated, however.
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