Bitcoin was finally back above the 200-day MA and had successfully breached the $9,000 level, with quite a few “Vegeta memes” on the way. However, BTC’s lifespan above the $9,000 mark and the 200 DMA was shorter than a Mayfly’s lifespan [24 hours] as Bitcoin’s crash took it from above $9,000 to $8,600.
The sudden collapse of BTC was caused due to a sell order of ~$22 million, which approximates to 2,444 BTC, at $9,000. As it stands, this drop caused liquidations of longs worth $107 million at 16:30 UTC on BitMEX.
Liquidated long on XBTUSD: Sell 9,903,346 @ 8514 💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯🔥⚡ ~ 1 like = 1 prayer🙏
— REKT (@BXRekt) January 19, 2020
The most notable liquidation on BitMEX due to Bitcoin’s crash was worth $9.9 million. This drop, combined with the liquidations, has contributed to a rewiring of the long/short ratio. The total longs before the massive dip were at ~32,2977; however, they’ve since dipped to $32,000.
Following the same, Binance had tweeted that the drop was caused “after some loss orders completing at Binance US.” However, at press time, the tweet seems to have been deleted.
At press time, Bitcoin stood at $8,600, a crucial level. Breaching this would lead to a further drop from $8,500 to $7,800, depending on the momentum with the bears.