Bitcoin broke the $10,000 psychological price barrier and briefly traded at $10,383.
Less than 24 hours later, BTC fell hard to $9,266 in what appears to be a classic Bart Simpson pattern.
Bitmex’s Co-Founder and CEO, Arthur Hayes, believes Bitcoin’s rally is not real until $15,000 is broken.
At around the time the daily candle closed yesterday, Bitcoin experienced a magnificent push from around $9,700 to $10,383 (Binance rate) in a matter of minutes. The King of Crypto then proceeded to cool down to levels around $10,100 where it traded sideways before dumping hard to $9,266 less than 24 hours after the rally above $10,000 begun. This move of up-sideways-down is often referred to as the Bart Simpson pattern as can be seen in the rough sketch below.
Arthur Hayes: Bitcoin’s (BTC) Rally Aint Real Until We Take out $15k
Before Bitcoin took its massive fall to $9,266, the Co-Founder and CEO of Bitmex, Arthur Hayes, had tweeted that he does not feel like the rally above $10,000 was a real rally. According to Mr. Hayes, Bitcoin needed to break $15,000 for it to be a true Bull season. His tweet can be found below.
The basis is starting to get juicy. It sure beats earning 0% at the bank, thanks Jay. But this rally ain’t real until we take out $15k. pic.twitter.com/8nLXodzipp
— Arthur Hayes (@CryptoHayes) June 2, 2020
$130 Million in BitMex Liquidations on the Journey to $10,000
Further doing a brief analysis of losses in terms of liquidations, when Bitcoin pumped hard above $10K to $10,383, there was a total of $131 Million in liquidations. This is according to the @BitmexSniper bot on Telegram messenger. A screenshot of the breakdown of losses from the bot earlier today can be found below.
$96 Million in Liquidations on BTC’s Crash
During the sudden dip down to $9,300 levels, a total of $96 million in futures contracts were liquidated on the Bitmex exchange.
Binance Hit Hard By Bitcoin’s Flash Crash
Additionally, the Founder and CEO of Binance, Changpeng Zhao, notified the crypto community that the drop down to $9,350 on the BTC futures contracts made a big dent on the exchange’s Insurance Fund. He also explained that there were no Auto-Deleverage Liquidations this time round and that the exchange had improved on the speed of the API used by the futures platform. CZ’s tweet explaining the event at the exchange can be found below.
High volumes. BTC Futures hit $9350 low. Insurance Fund got hit too. NO ADL.
Observed some increased latency on some APIs. A new V2 API that is 10x faster was rolled out this morning. Encouraging all API users to switch to V2. pic.twitter.com/eCF0aQEM5C
— CZ Binance (@cz_binance) June 2, 2020
What Next For Bitcoin?
With the psychological price of $10,000 captured then lost in a span of fewer than 24 hours, the bullishness that was previously in the crypto community might have temporarily faded due to the quickness of the crash that followed. Therefore, observing Bitcoin for another 12 – 48 hours might be advisable for the cautious trader of BTC and other cryptocurrencies. At the time of writing this, Bitcoin has recovered mildly from the drip and is trading at $9,472 – Binance rate.
(Feature image courtesy of Unsplash.)