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Lucky Buyers Possibly Bag $8K Bitcoin During Early Morning Flash Crash

Highly volatile cryptocurrencies like Bitcoin, Ethereum, and other altcoins can behave irrationally at any given moment, especially when turbulence strikes. But what happened this morning on the US branch of Binance, was shocking for even those who have seen flash crashes happen in real time.

The result of a massive wick left on the BTCUSD chart was a violent trip to $8,000 where coins were potentially exchanged for prices that are currently 87% lower than where Bitcoin is trading at right now. Here is a closer look at what went down, and what might have happened as a result.

Flash Crash On Binance US Takes BTC Back To $8,200

If you’ve been in crypto for some time, chances are you’ve heard some horror stories. Other users have lost funds due to hacks, sent funds to the wrong address, or worse. What few ever experience, however, is getting caught up in a flash crash.

Related Reading | Bitcoin Price Sets New All-Time High Above $65,000

We don’t mean a particular strong selloff, but a “flash crash” that sends the price of an asset diving so deep, it can often bring them back to close to zero.

While this morning Bitcoin price didn’t fall back to nothing, it did get a digit knocked off its price tag, and about 87% of the value per coin, according to the Binance US BTCUSD price chart.

The wick left behind on Binance US reached August 2020 levels | Source: BTCUSD on TradingView.com

The flash crash took the cost per BTC back to pre-bull market breakout levels from back in August 2020. It also was roughly an 87% fall from current prices, which was a larger drawdown percentage wise than the bear market from $20,000 to $3,200 at the low.

Bloody Bitcoin Wick Leaves Shock And Awe Behind

The hourly chart below is a better demonstration of how ridiculous the wick looked on lower timeframes as it was happening. The wick reached as low as around $8,200.

The hourly chart shows how deadline the wick was | Source: BTCUSD on TradingView.com

Any lucky Binance US users with a limit order ready to go could have gotten filled during the madness, which also means that some poor pleb could have sold their coins at a cost of $8,200 – significantly lower than the current price per Bitcoin, which just yesterday reached a new all-time high.

Related Reading | Bitcoin Price Prepares To Blast Off Back Into RSI “Bull Zone”

In the past, assets like Chainlink and even Ethereum have flash crashed down to nearly zero. Keeping orders ready on an exchange can take advantage of situations like the above. But these rare events aren’t predictable and can strike at any moment.

So which legend bought $BTC at $8000 today?

— Simon Dedic (@scoinaldo) October 21, 2021

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

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Flash Crash Sends Cardano (ADA) Barreling Downwards To A $2 Retest

Cardano (ADA) has not been left out of the massive flash crash that just occurred throughout the market. What seemed to be a good day for bitcoin as El Salvador’s “Bitcoin Day” began has now turned to nothing short of a nightmarish market opening. The crash saw bitcoin drop $6K in only a matter of hours. While the general altcoin markets have recorded crashes as high as over 20% in the same timeframe.

With altcoins following bitcoin closely, the price of the ADA shows similar movement patterns to BTC following the flash crash. The number 1 crypto coin fell to the mid-$40K, taking the whole of the market down with it.

Related Reading | IOG Denies Rumors About Cardano Smart Contracts Platform

The flash crash has taken the market by surprise, given that general sentiment is positive and the Fear & Greed Index putting the market in “Extreme Greed”. There’s currently no exact reason pinpointed for this crash. Although massive liquidations to the tune of almost $1 billion across the crypto market look to be the culprit. The liquidated positions being mostly long positions.

Crash Puts Cardano (ADA) In Chokehold

Struggling alongside the other cryptocurrencies is Cardano (ADA). The asset had long left behind the $2 price point since mid-August, with indicators pointing towards a pathway to $5 following upgrades. But with the current flash crash, the digital asset lost over 18% of its value. This set it on a downward trend that saw ADA hitting the low $2s for the first time in three weeks.

Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course

Even though Cardano (ADA) has seen an upward correction that sent it towards mid-$2, the price is still maintaining a struggling pace. Trend lines in the asset show a sideways zig-zag, up and down pattern. Depicting numerous dips and recoveries in just the past hour alone. Starting the early hours of the morning was ADA at $2.75. A bit shaky but was holding on tight to this price point.

Flash crash sends ADA price to three-week lows | Source: ADAUSD on TradingView.com

At this junction, it is still too early to tell how much recovery ADA will make in the hours following the flash crash. It has so far recovered about 6% of value lost during the crash, with indicators pointing towards total recovery. As of the current time of writing, Cardano (ADA) is still trading low at a price of $2.45 according to Coinmarketcap, with a 24-hour price change of 13.46%.

Featured image from Currency.com, chart from TradingView.com