Bitcoin Price Drops 4.3%, Hours after CME Opening; $25 Mln in Longs Liquidated on BitMEX

By Nivesh Rustgi
Published February 24, 2020 Updated February 24, 2020
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Bitcoin Price Drops 4.3%, Hours after CME Opening; $25 Mln in Longs Liquidated on BitMEX

By Nivesh Rustgi
Published February 24, 2020 Updated February 24, 2020

Bitcoin [BTC] drops from $10,00 by 4.39% as the price fails to break above $10,000, yet again. On the hourly, the chart show considerable uncertainty at the top, possibly due to large sell orders.

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Co-incidentally, the price dip occurred in the subsequent hours after market open at CME. The opening price at Bitcoin futures contract was $225 dollars higher than closing price on Friday. Nevertheless, the bullish gap gets filled almost instantly at the weekly opening with a drop.

cme openning charts
Bitcoin [BTC] Futures Price 1-Hour Chart on CME (TradingView)

Traders’ Views on 24-Hour Exchanges

A drop of nearly $450 dollars forms a bart simpsons pattern on spot exchanges. It dropped below the support from 50-period moving average on the 4-hour at $9822.

Leading derivatives and crypto trader, Cantering Clark reported heavy selling on order books a few hours before the price dropped. He tweeted,

Starting to see sellers come in. Look for what price “should be doing” that it isn’t doing right around now. i.e.
Heavier selling coming in yet price remaining afloat. Need to trap some before we move, if up is the case. I am not sure. $BTC
cantering clark
Bitcoin [BTC] Order Schematics (Red Candles>Blue) (Source: Twitter)
His skepticism turned true after the buyers failed to push above the daily high once again. The sell-off was a potential short signal with 2 consecutive failed attempts at $10,000.
btc flash drop
BTC/USD 1-Hour Chart on Bitstamp (TradingView)

Clark tweeted on the price action,

After rejection again there are 2 small bounces that fail at the equal highs within the range. After second failure buyers are toast, done stepping in at the low. Good opportunity to side with aggressive O.F. $BTC
The long order liquidation on BitMEX was about $25 million with the downward action, according to Datamish. The failure to break below the $9800-$10,000 region also hold a lot of significant w.r.t. volume profiles. Trader Joshnimics tweeted the volume profile chart,
bitcoin volume profile
Bitcoin Price (Volume Profile) Analysis (Source: Twitter)
Nevertheless, it also seems to suggest huge buying support above $9500. The price would need to break or below the regions of support and resistances for huge decisive moves.
Do you think the bulls will be interested in buying the dip or it will test $9500 as resistance again? Please share your views with us. 
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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Nivesh Rustgi
1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

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