3 Reasons for the Bitcoin Price ‘Halving Dump’ From $10K to $8.1K
Bitcoin (BTC) price dropped from $10,000 to $8,100 within just over a day, as it plunged by 9% in a single hour. It liquidated $200 million worth of shorts, obliterating the futures market.
The three key reasons that triggered the immense Bitcoin correction were: strong multi-year resistance area above $10,000, whales moving to short the market on BitMEX, and extreme volatility heading into the halving.
$10,200 to $10,500 is a multi-year strong resistance area for Bitcoin
Since mid-2018, the $10,200 to $10,500 range served as a historically strong area of resistance for the top-ranking cryptocurrency by market capitalization.
After its first breakout above $10,500 in June 2019, which led to a swift run to $14,000, Bitcoin failed to move above that level five out of six times in the last two years.
When the Bitcoin price initially broke down at $10,100 on May 8, it signaled the rejection of a key resistance level and left BTC vulnerable to a steep correction.
As whales started to sell at $9,900, it led to a cascade of long contract liquidations primarily on BitMEX and Binance Futures. In one hour, more than $200 million worth of longs were liquidated.