On Friday, the crypto market was shocked when Bitcoin suddenly flash crashed. Within an hour, the leading cryptocurrency fell from $7,800 to $6,100 on Bitstamp, as one entity seemingly triggered a massive sell-off with one large sell order, purportedly amounting to 5,000 BTC. While Bitcoin rapidly recovered, moving from $6,100 to $7,300 as of the time of writing, some fear that this move is entirely conducive to the crypto market’s short-term success. In other words, another drawdown might just be inbound.
Bravado analyst Bitcoin Jack recently he’s bearish until the leading cryptocurrency posts new year-to-date highs. He notes that the fact that BTC saw a large sell-off on high volumes, has begun to trend higher on dropping volumes and into a “mitigation block”, makes him wary of going long.