{"id":123148,"date":"2020-11-30T20:24:34","date_gmt":"2020-11-30T17:24:34","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/classic-top-setup-bitcoin-price-flash-crashes-on-kraken-after-all-time-high\/"},"modified":"2020-11-30T20:24:34","modified_gmt":"2020-11-30T17:24:34","slug":"classic-top-setup-bitcoin-price-flash-crashes-on-kraken-after-all-time-high","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/classic-top-setup-bitcoin-price-flash-crashes-on-kraken-after-all-time-high\/","title":{"rendered":"# &#8216;Classic top setup&#8217;? Bitcoin price flash crashes on Kraken after all-time high"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3c56cd0de04\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3c56cd0de04\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/classic-top-setup-bitcoin-price-flash-crashes-on-kraken-after-all-time-high\/#Kraken_BTC_price_dumps_3000\" >Kraken BTC price dumps $3,000<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/classic-top-setup-bitcoin-price-flash-crashes-on-kraken-after-all-time-high\/#Bollinger_cautions_over_%E2%80%9Cclassic_top_formation%E2%80%9D\" >Bollinger cautions over &#8220;classic top formation&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># &#8216;Classic top setup&#8217;? Bitcoin price flash crashes on Kraken after all-time high <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Bitcoin (BTC) reached a new all-time high on various exchanges on Nov. 30, but one record, in particular, hit the headlines for a different reason.<\/p>\n<p>Data from cryptocurrency exchange Kraken shows BTC\/USD hit its highest ever price on its order book \u2014 then dove to $16,600 in seconds.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Kraken_BTC_price_dumps_3000\"><\/span>Kraken BTC price dumps $3,000<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The reason for the crash, which will have liquidated a large number of positions and caused considerable pain for many a speculator, was likely what is known as a &#8220;stop-loss run.&#8221;<\/p>\n<p>Stop-loss runs involve large-volume traders who intentionally place large sell orders at a specific price point, then target where they think a large number of stop-loss positions reside. In this case, the target was around $16,600, near the location of last week&#8217;s local bottom.<\/p>\n<p>The result is a cascade of selling pressure that very quickly delivers the result, if successfully estimated, only for the market to subsequently rebound once the process is over.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/6ebd994f-3c5d-41ec-afc4-6794a56661e9.jpg\"><figcaption style=\"text-align: center;\"><em>Kraken XBT\/USD 1-minute chart showing crash. Source: <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/XBTUSD\/?exchange=KRAKEN\">TradingView<\/a><\/em><\/figcaption><\/figure>\n<p>Liquidity risk is always a given factor in exchange trading, and Kraken&#8217;s one-minute wick down by $3,000 aptly demonstrates why traders should exercise caution around significant price points.<\/p>\n<p>Another explanation, or possibly one that contributed to the event, was investors choosing to exit at near $20,000 in order to avoid the costs of a sudden reversal at resistance.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bollinger_cautions_over_%E2%80%9Cclassic_top_formation%E2%80%9D\"><\/span>Bollinger cautions over &#8220;classic top formation&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&#8220;OK, time to pay attention, $BTCUSD. That is a classic top setup,&#8221; John Bollinger, creator of the Bollinger Bands volatility indicator, <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/bbands\/status\/1333450450855608320\">warned<\/a>.<\/p>\n<blockquote><p>&#8220;No confirmation yet and the setup could easily be overrun, but wise traders should wash their glasses.&#8221;<\/p><\/blockquote>\n<p>When asked by a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> user if this is a local top or whether Bitcoin&#8217;s price will go down from here, he responded that &#8220;For now, a potential local top&#8230;&#8221;<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p>Beyond Kraken, meanwhile, Bitstamp also reached its own all-time high at $19,869, with BTC\/USD then falling toward $19,000, a level that the pair reclaimed just hours ago.<\/p>\n<p>&#8220;For those who are feeling bullish about #Bitcoin, today is the day you\u2019ve been waiting for,&#8221; exchange Binance meanwhile <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/binance\/status\/1333440468764471299\">summarized<\/a>.<\/p>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/classic-top-setup-bitcoin-price-flash-crashes-on-kraken-after-all-time-high\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# &#8216;Classic top setup&#8217;? Bitcoin price flash crashes on Kraken after all-time high &#8221; Bitcoin (BTC) reached a new all-time high on various exchanges on Nov. 30, but one record, in particular, hit the headlines for a different reason. Data from cryptocurrency exchange Kraken shows BTC\/USD hit its highest ever price on its order book&#8230;<\/p>\n","protected":false},"author":1,"featured_media":123149,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/d0e442c0-2980-4d35-a75c-255110f6ca1c.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74860,75540,73785],"class_list":["post-123148","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-cryptocurrency-exchange","tag-kraken","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/123148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=123148"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/123148\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/123149"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=123148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=123148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=123148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}