The collapse of the bitcoin rate began at 20:00 Moscow time. Moreover, before that, the main world cryptocurrency was actively growing, winning back, together with other risky exchange assets, the data of exit polls, foreshadowing the victory of the Republicans in the midterm elections to the US Congress.
For 2.5 hours – from 20:00 to 22:30 Moscow time – bitcoin quotes at the moment fell by more than 16%. The course reached $17.1 thousand per coin. The last time a cue ball was so cheap was in November 2020.
There are no objective reasons for such a collapse. Since mid-September, the bitcoin rate has been in a sideways trend with an upward trend. Many speculators were betting that quotes would not leave the $19-22 thousand corridor. Therefore, a breakdown of any of these levels could trigger the closure of positions on stop orders and margin calls, which happened today, further intensifying the fall.
Very often, after a long sideways trend, a sharp movement of an asset is a signal for the beginning of a medium-term trend, and in most cases it is opposite to the initial surge. Large speculators – namely, they dominate the cryptocurrency market by selling or buying a significant amount of contracts – provoke smaller players into forced closing of positions, which only strengthens the movement.
Thus, if today’s breakout of the $18,000 mark was false, then in the very near future, the bitcoin rate will test the $22,000 mark for strength, and if the outcome is successful, it will go to test $30,000.
Otherwise, you should wait for the quotes to go to the area of $10 thousand per coin.