Bitcoin price just dropped to $58,000 yesterday, had a flash crash on Bitstamp, then quickly recovered. Currently, BTC is trading around $61,499, up 5% over the past 24 hours.
BTC/USD 4-hour chart | Source: TradingView
The rise of Bitcoin price led to a rapid increase in the market
Bitcoin has flash crashed by more than 7%, trimming over $4,000 in just one minute.
Specifically, BTC unexpectedly dropped to $56,000, down more than 7% on significant spot exchanges within a minute. It hit an intraday low of $56,425 on the Bitstamp exchange, then quickly offset a large portion of recent losses.
After hitting an all-time high of $67,276 on October 20, Bitcoin started to show some weakness. The top coin recovered to $61,848 earlier today, but the bulls were caught off guard by the most recent flash crash.
According to Bybt data, over $50 million worth of Bitcoin has been liquidated in the past hour. On October 21, as AZCoin News reported, BTC plummeted to $8,200 on the Binance.US exchange due to a bug in a customer’s trading algorithm.
The current situation of BTC is still in an unstable trading range. Analysts have mixed views on the short-term trend of the BTC price, which has been up around 5% in the past 24 hours. Some believe what is happening is a quick balancing process and preparation before the push for new highs, while others think it’s the beginning of a broader correction that will take BTC to $45,000 – $50,000. Technical Bitcoin price indicators are retreating from overbought levels, which could lower the odds of a sustained correction.
There are still many institutions that put their faith in BTC. MicroStrategy added almost 9,000 BTC to its holdings in Q3, bringing its total BTC stash to a valuation of around $7 billion.
Earlier today, CEO Michael Saylor reiterated his bullishness for digital gold by stating that “you do not sell your Bitcoin” as he retweeted his post from October 2020, revealing personal holdings of 17,732 BTC.
You do not sell your #bitcoin. https://t.co/zMGyYU1iRp
— Michael Saylor⚡️ (@saylor) October 28, 2021
Meanwhile, ETH outperforms BTC. The world’s second-largest cryptocurrency by market capitalization, returned above $4,000 and up about 10% over the past 24 hours, extending its outperformance versus BTC.
ETH has just hit a new all-time high of $4,400 after reaching a massive token circulation output day of 1.74M ETH Tuesday, creating the bullish divergence. On-chain metrics appear pretty healthy for the second coin by market value.
Source: Santiment
The altcoin market is also active. As AZCoin News reported, Dogecoin (DOGE) hits a two-month high as Shiba Inu (SHIB) lags. Two of the most popular meme coins compete for the ninth spot on the list of top digital assets by market capitalization. Some traders are profiting from the action by taking spread trades. So far, diverging price trends are helping DOGE consolidate its position as the ninth-biggest coin.
Binance Coin (BNB) is also slowly regaining the $500 level. Meanwhile, XRP has risen above $1, currently trading at $1.08. The overall crypto market capitalization stands at $2.622 trillion, and BTC Dominance is at 44.2%.
Read more:
- The Wharton School, Ivy League Institute, Will Accept Bitcoin For Tuition Fees
- Central Retail Corp Launches Tests Of Its Own Crypto For Shopping Malls And Restaurants