Bitcoin Spooks Traders With $6,150 Drop

Reading Time: 2 minutes
  • Bitcoin spooked traders yesterday with a $6,150 drop after spiking to all-time highs
  • Bitcoin hit $69,000 before its sharp correction
  • It ended at a point of support we highlighted on Monday as being crucial if it held

Bitcoin endured a quickfire $6,150 correction after spiking to new highs of $69,000 yesterday, leaving it sitting just above a key line of support. After assuming a breakout was on the cards following its jump to an all time high, traders were shocked to see it plummet to $62,850, wiping out $100 million worth of margin traders in long positions. However, the drop merely leaves Bitcoin at the support area outlined on Monday, with a resumption of the uptrend likely assuming that support holds.

Key Support Level Holds

After Bitcoin hit a prior all-time high of $68,500 over the weekend, we suggested that there were two areas of interest should a likely correction take place:

btc1 (1)

As we can see, after $100 million worth of liquidations caused a wick to $62,850, Bitcoin eventually came to rest just above the key area of support:

btc2 (1)

Assuming Bitcoin remains above this zone this is very bullish for the market, with funding now having reset, which means the world and his dog is not not in a long position. The crypto markets have now been flushed, which will now probably result in a period of consolidation around this area, before continuation. If this is indeed the case then we can say that $64,000 is now considered an area of strong support, which provides a great level going forward.

Long Term Outlook Bullish For Bitcoin

When we zoom out to a weekly timeframe we can see that Bitcoin is beautifully poised for further upwards momentum, if the 2020 crash is to be used as an example:


Of course it’s a virtual impossibility that we see the same scale growth from this period, but we can clearly see that a crash followed by a return to prior highs usually results in one thing – WAGMI.