Bitcoin caught a lot of traders (including me) off guard today as the price plummeted more than -12% in less than 10 minutes.
This flash crash caused widespread panic in the Bitcoin community as traders are asking questions like; is this a price manipulation, are we seeing a change in trend, or did we just hit a massive resistance we might find difficult to breakthrough?
Well, in this Bitcoin analysis, I will be taking a critical look at this situation and giving you my honest outlook on what I think happened to Bitcoin and why. I will also be giving you my Bitcoin outlook for both the bearish and bullish scenarios.
What Happened To The Bitcoin Price?
I believe this -12% flash crash was only a trend shake out and we can expect to see the Bitcoin price continue to head higher in the coming days.
This type of flash crash as happened numerous times before on Bitcoin. However, the crash of today was the fastest one we have ever experienced on Bitcoin with the price plummeting more than 10% in 5 minutes.
Why Did It Happen?
In a recent Bitcoin analysis titled “Warning To Bears: Bitcoin Repeating 2017 Bull Run Pattern!“, I talked about a retracement like this happening in the nearest future. In the article, I termed it “the last stand for bears to try and push the Bitcoin price back down“
However, I need to be honest and say the level I was expecting this retracement to occur was the $14,000 region, and also I wasn’t expecting the bearish retracement to be as massive or as sudden as what we experienced today.
My Forcast For The Bitcoin Price In The Coming Days
I will be giving you both my bearish and bullish outlook for the Bitcoin market. This way we can be better prepared to take advantage of the price movement no matter what the Bitcoin price decides to do.
My Bullish Outlook
As we speak, the Bitcoin price as already corrected more than half of the flash crash and I expect this correction will continue throughout this week.
Also, it is very important to note that this crash is very minute and unimportant when compared to the larger bullish trend Bitcoin has been in for the past few years.
My Bearish Outlook
The level I am watching to see the Bitcoin price hold is the $10,386 level. You will notice that this level held the price back even during the flash crash.
A break and close below this level will see more bearish pressure coming into Bitcoin. And a larger retracement back down to $9,000 support region.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.
If you are looking for the best cryptocurrencies to put on your watch list and trade, then check out my Top 25 Cryptocurrencies by Market Capitalization