{"id":336034,"date":"2021-09-07T22:05:33","date_gmt":"2021-09-07T19:05:33","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/analysts-point-to-overleveraged-traders-after-bitcoin-flash-crashes-to-43k\/"},"modified":"2021-09-07T22:05:33","modified_gmt":"2021-09-07T19:05:33","slug":"analysts-point-to-overleveraged-traders-after-bitcoin-flash-crashes-to-43k","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/analysts-point-to-overleveraged-traders-after-bitcoin-flash-crashes-to-43k\/","title":{"rendered":"# Analysts point to overleveraged traders after Bitcoin flash crashes to $43K"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 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-6a2920b544002\" 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-6a2920b544002\" 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\/analysts-point-to-overleveraged-traders-after-bitcoin-flash-crashes-to-43k\/#Longs_are_heavily_liquidated_as_BTC_sells_off\" >Longs are heavily liquidated as BTC sells off<\/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\/analysts-point-to-overleveraged-traders-after-bitcoin-flash-crashes-to-43k\/#Possible_outlier_detected\" >Possible outlier detected<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/analysts-point-to-overleveraged-traders-after-bitcoin-flash-crashes-to-43k\/#Not_all_traders_were_caught_off_guard\" >Not all traders were caught off guard<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Analysts point to overleveraged traders after Bitcoin flash crashes to $43K <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Traders were caught flat-footed on Sep. 7 after a sharp collapse in the price of Bitcoin saw the digital asset fall below $43,000\u00a0and this led to widespread liquidations in derivative markets as more than $3.54 billion was liquidated.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Amount of Liquidations in the past 24 hours by exchanges in total $3.54 was liquidated!<\/p>\n<p>In the past 24 hours, 330,243 traders were liquidated. The largest single liquidation order h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened on <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/HuobiGlobal?ref_src=twsrc%5Etfw\">@HuobiGlobal<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/BTC?src=hash&amp;ref_src=twsrc%5Etfw\">#BTC<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> value $43.7M<\/p>\n<p>Data source: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/bybt_com?ref_src=twsrc%5Etfw\">@bybt_com<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/hNgctWgCgP\">pic.twitter.com\/hNgctWgCgP<\/a><\/p>\n<p>\u2014 CryptoDiffer (@CryptoDiffer) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoDiffer\/status\/1435270364943245314?ref_src=twsrc%5Etfw\">September 7, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>Bullish sentiment had been on the rise coming out of the Labor Day holiday weekend in the United States because Bitcoin was officially recognized as legal tender in El Salvador, but the celebration was quickly extinguished by BTCs 16% plunge. <\/p>\n<p>Data from Cointelegraph Markets Pro and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/\">TradingView<\/a> shows that the sell-off in BTC began during the early trading hours and accelerated into midday as the price of Bitcoin fell to a low of $42,837 before dip buyers arrived to bid it back above $46,500. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/89b4e352-87d4-49ee-99b9-c89cebcb3675.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USDT 4-hour chart. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSDT\/\"><em>TradingView<\/em><\/a><\/figcaption><\/figure>\n<p>Here\u2019s what traders are saying about this rapid sell-off and what to be on the lookout for as the market attempts to digest the chaos of the day.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Longs_are_heavily_liquidated_as_BTC_sells_off\"><\/span>Longs are heavily liquidated as BTC sells off<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A fact-focused analysis of the current state of the market was offered by on-chain analyst Willy Woo, who posted the following tweet outlining today\u2019s developments. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Day opened with equities risk-off.<\/p>\n<p>Some sell down of BTC.<\/p>\n<p>Medium levels of fundamental inflows (selling).<\/p>\n<p>Then stop hunt \/ liquidity collapse.<\/p>\n<p>$1.1b of BTC liquidations.<\/p>\n<p>Overall unsupported by investor fundamentals on-chain.<\/p>\n<p>Exchanges are now in outflows (buying)<\/p>\n<p>\u2014 Willy Woo (@woonomic) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/woonomic\/status\/1435267544298909697?ref_src=twsrc%5Etfw\">September 7, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>As noted by Woo, the wider financial markets opened the day risk-off, which put pressure on the crypto market that cascaded as the day progressed. <\/p>\n<p>The ensuing sell-off resulted in $1.1 billion worth of Bitcoin liquidations, but on-chain data does not suggest that investors are in a rush to close their positions and the most recent activity shows that exchanges are back in buying mode. <\/p>\n<p>A follow-up tweet from Woo shows just how unexpected today\u2019s move in the market was, a good reminder that risk management is always something to keep in mind in the crypto market. <\/p>\n<p>Woo said, <\/p>\n<blockquote><p>\u201cNot entirely sure WTF just happened, but that&#8217;s the sequence of events. The sell-off was mainly on derivative markets (like most crashes).\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Possible_outlier_detected\"><\/span>Possible outlier detected<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Further analysis of today\u2019s move in Bitcoin was provided by market analyst and Cointelegraph contributor Micha\u00ebl van de Poppe, who also highlighted the role that overleveraged traders played in today\u2019s price action. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> lost that $49K level as crucial support and smacked through it.<\/p>\n<p>What just happened?<\/p>\n<p>Overleveraged positions getting liquidated in a chain reaction, causing a massive wick.<\/p>\n<p>If this wick closes above $47\/48K, it will be an outlier.<\/p>\n<p>Opportunities.<\/p>\n<p>\u2014 Micha\u00ebl van de Poppe (@CryptoMichNL) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoMichNL\/status\/1435261501712093186?ref_src=twsrc%5Etfw\">September 7, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to Poppe, if BTC can manage to close above the $47,000 to $48,000 range following this pullback, the move will be considered an outlier to the previously established trend and a good buying opportunity should the uptrend resume. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>El Salvador buys the dip as Bitcoin price flash crashes to $42.9K<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Not_all_traders_were_caught_off_guard\"><\/span>Not all traders were caught off guard<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Not all participants in the market were caught unawares by today\u2019s downside move, as highlighted in the following tweet posted by analyst and pseudonymous <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> user Crypto_Ed_NL. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Feeling lucky you did not get liquidated in that corrective move earlier today? <br \/>Wait with getting new, dry pants&#8230;might not be over yet! <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/DIp9USNfK7\">pic.twitter.com\/DIp9USNfK7<\/a><\/p>\n<p>\u2014 Crypto_Ed_NL (@Crypto_Ed_NL) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Crypto_Ed_NL\/status\/1435227746586796032?ref_src=twsrc%5Etfw\">September 7, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>A follow-up tweet included the following chart showing that the scenario played out just as Crypto_Ed_NL had warned. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/8c4ced71-3b32-4d39-b2f5-ea96bd159610.jpg\"><figcaption style=\"text-align: center;\"><em>BTC\/USDT 15-min chart. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Crypto_Ed_NL\/status\/1435254401250250752\/photo\/1\"><em>Twitter<\/em><\/a><\/figcaption><\/figure>\n<p>Crypto_Ed_NL said, <\/p>\n<blockquote><p>\u201cBTC reached the green box. Let\u2019s see how it bounces\u2026 should be it for this correction in my opinion. <\/p><\/blockquote>\n<p>The overall cryptocurrency market cap now stands at $2.103 trillion and Bitcoin\u2019s dominance rate is 42.1%.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\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\">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\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/analysts-point-to-overleveraged-traders-after-bitcoin-flash-crashes-to-43k\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Analysts point to overleveraged traders after Bitcoin flash crashes to $43K &#8221; Traders were caught flat-footed on Sep. 7 after a sharp collapse in the price of Bitcoin saw the digital asset fall below $43,000\u00a0and this led to widespread liquidations in derivative markets as more than $3.54 billion was liquidated.\u00a0 Amount of Liquidations in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":336035,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDkvYmUyNWVjMmUtZmE2My00MjNmLWI2ZmYtZmYyZjM4YjJmZjJkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74972,81209,74937,74863,74860,75150,3123,73785],"class_list":["post-336034","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-futures","tag-bitcoin-options","tag-bitcoin-price","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-market-update","tag-leverage","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/336034","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=336034"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/336034\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/336035"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=336034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=336034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=336034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}