Bitcoin Falls to $28,800 on Huobi Amid Debilitating Marketwide Flash Crash

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Following a marketwide crash in the crypto industry yesterday, Bitcoin (BTC) suffered a 21% plunge to the $42,000 low on most exchanges. Yesterday’s slump is arguably one of the worst in recent history for the market, with BTC shedding over $11,500 alone.

However, Huobi traders suffered a worse crash as the crypto asset recorded a sharp dip to the $28,800 level before jumping back to normal levels.

This event is known as a “flash crash” and is characterized by a slump in the price of an asset on one or more exchanges compared to most of the market and recovers immediately. Yesterday’s crash to $42,000 and back to the $46,000 area occurred within a few minutes and had other characteristics of a flash crash.

As expected, yesterday’s nosedive, which triggered massive double-digit drops, caused massive liquidations for leveraged traders. These traders likely suffered the most loss.

According to analytics platform CoinGlass (Bybt), total liquidations crossed $2.5 billion yesterday alone. The report shows that roughly 400,000 traders got liquidated, and the single highest liquidation position was $28 million on Bitfinex.

Meanwhile, most other cryptocurrencies (altcoins) had it worse, with some shedding as much as 30%.

Key Bitcoin Levels to Watch — December 5

Following its slump to the $42,000 low, BTC has recovered by halfway from yesterday’s fall from the $53,000 level. The benchmark cryptocurrency currently coasts around the $49,500 range as sellers take profit. Regardless, on-chain metrics still show that the overall bullish sentiment remains intact for BTC.

BTCUSD – 4-Hour Chart on Gemini. Source: TradingView

However, I expect a retest of the $45,000 low over the coming hours or days before the price repositions for a rebound or bearish continuation. For bulls to reclaim dominance on the technical front, BTC needs to resurface above the $54,000 pivot top, a substantial distance from its current levels.

Meanwhile, my resistance levels are at $50,000, $50,500, and $51,400, and my key support levels are at $48,500, $47,000, and $46,300.

Total Market Capitalization: $2.32 trillion

Bitcoin Market Capitalization: $930.7 trillion

Bitcoin Dominance: 40%

Market Rank: #1

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.