Bitcoin Just Plunged $700 Upon Reaching $9,060, Correction or Reason To Panic?

[robelneo]

It's just a correction it's pretty normal of course this happened thousands of times before, I'm just glad that we stepped in the $8000 level we have been into the $7000 mark for so long I'm pretty sure before the halving we can see the price reaching the $1000 level.

[Obito]

As mentioned by everyone here, it is just a correction. There is no big reason to panic. As market doesn't show any signs of down trend. I think we are going to be stable probable somewhere between 8.8k up to 9k? And as per major events incoming, I don't think it would much an effect as it won't last long in the first place. We are approaching halving quite steady for now.

[nutriagrigia]

a few days ago I placed orders to buy bitcoin at the prices of 8551/8073/7500 and today my first purchase was done. I also expect that by the end of January all my buy orders will work. I do not think that we will go below 7500, but this can also happen. we will observe all together

[huu78]

I heard because of a panic problem, because there is news that he said selling instant Bitcoins in a large and at once which makes the impact of Bitcoin down very fast and everyone is panicked. But I think it still persists there and not too far that impact may occur correction and back up.

[Juggy777]

Today we got another reminder that volatility is working both ways.

Bitcoin has fabulous times since entering the new decade. However, when we see such a parabolic move to the upside, we can expect volatile moves to the other side, as well.

Just yesterday, we mentioned Bitcoin price reaching its first major test – the 200-days moving average line (marked light green on the following chart). Many analysts see this tough resistance as the barrier between Bear and Bull markets.

Today, Bitcoin surpassed the crucial moving average line (roughly around $9060). However, shortly after recording a daily high (and year to date) at $9188 (Bitstamp), we received a MEGA dump.

Besides, on the 4-hour chart, we can clearly see Bitcoin reaching the top area of the marked ascending channel.

Bitcoin lost over $700, plunging to the $8400 old resistance level. As of writing these lines, Bitcoin had recovered a bit, trading above the $8600 resistance level.

I too was surprised to see a sudden collapse, but after doing a quick google search I have found that the real reason behind this crash was the liquidation of $108 million worth long contracts. Though the article also states that only $10 million worth of contracts were actually liquidated, hence I believe that someone just tried to manipulate the prices by spreading fud, and we should see bitcoin prices recover soon.

Source: https://www.newsbtc.com/2020/01/19/bitcoin-dropped-6-in-just-5-minutes-liquidating-108m-what-happens-next/

[oscarftw]

This is must be a correction time. No matter what happened before Bitcoin halving, price should surge more than before pump. Don't be panic in correction time, as me you could lose huge profits in future. I don't think 700 USD is huge plunged after this 9k pump in this year. Instant price fall is good for price up slowly.

[tomahawk9]

Someone (a whale probably) had a limit order at 9k and it triggered precisely at that price. The give away that it was automatic (a bot) was the time (6:00 am EST), so it was probably someone from Asia who caused this dump since it was pretty early in the US and people in Europe were busy watching football or something else  

In other words: no reason to panic or overanalyze things with charts and whatnot. It's just another day at the office.

[JL0]

I copied a picture of @exstasie



The 200MA on the daily Chart is very strong and for me it doesn't look good. What do you guys think ?

[crzy]

As expected, the price will correct for a while and if the up trend is really strong then we will go back to a $9k level again and go beyond that. There’s no panic at all, people just want to take profit as early as possible since they also believe for a correction. This should be a temporary correction, we still need to go up high.

[samcrypto]

As expected, the price will correct for a while and if the up trend is really strong then we will go back to a $9k level again and go beyond that. There’s no panic at all, people just want to take profit as early as possible since they also believe for a correction. This should be a temporary correction, we still need to go up high.

I also think there is no reason to panic, everything continues as expected. We already knew BTC had a resistance around $9k and king would try it. It tried once, and will come back to try again. And IMO we will pass it without losing much time in the next attempts. Because I believe that this year's increase will be more. We do not have much time to lose here.

Since the price didn’t go back below $8k or didn’t stay on the level of $7k, i also think that this is just a healthy correction. The resistance can’t be broke in just one attempt so people should be more patience and not to panic for a normal correction. The next attempt will be big, and it would be great to break all the resistance this year, the bull will come to us.

[pixie85]

Looks healthy to me, i would be more alarmed if it suddenly went up from there. Steady rise with high volatility is something i can deal better with then parabolic rise.

Not really that healthy. It took only 3 minutes for the thing to play out from the beginning to the end. Makes you want to scream manipulation because it was so sudden and then nothing, no more trading. Like that person or group did what they had to do before anyone could react and left

It's not a reason to panic because there was no follow up. Real bearish moves look like the asset is bleeding out slowly with small upside corrections.

[milewilda]

Looks healthy to me, i would be more alarmed if it suddenly went up from there. Steady rise with high volatility is something i can deal better with then parabolic rise.

Not really that healthy. It took only 3 minutes for the thing to play out from the beginning to the end. Makes you want to scream manipulation because it was so sudden and then nothing, no more trading. Like that person or group did what they had to do before anyone could react and left

It's not a reason to panic because there was no follow up. Real bearish moves look like the asset is bleeding out slowly with small upside corrections.

Just as usual and also theres no one could stop these kind of events yet its always been like this when price do shoots up then what follows up is a sudden crash or sell-off. Wondering why people still got surprised with these events? We cant just expect for having a straight bullish run all the way and come to think that there would be sell off or checkpoints for those people who are waiting to cash out but the good thing here that we do see
its price is somewhat stabilizing and holding on 8500+ and if an another run trigger out then we might able to see 5 digits price once again.

[lanos925]

Nothing wrong with that. This is normal price behavior.

[logfiles]

the $700 plunge is nothing, wait when it drops by over $1500 in a day 
Anyway, the movement is just a normal correction which calls for no need to panic. The pattern is actually predictable when bitcoin is in an uptrend. Those who know how to make money through margin trading.... this is the time to reap.

[marcous]

Remember we are approaching the Halving period, correction is a necessary thing too I guess. at least the investors/traders who have not yet set up Bitcoin can participate in buying so as not to miss a moment. Even though you guys panic when corrections, it is normal, especially since we have experienced a bear market for almost 2 years, so psychologically, the fear of loss comes again.

[Shinpako09]

There's no need to get panic as you can see, it quickly recovered simply because we are still in good run. Dump like that is pretty normal because of traders selling point. Now, expect to have this again when we reach $10k. Panic for every dump is not a good doing and someone shouldn't practice it. Not because we have declined doesn't mean we are going to the other side again. Ones shouldn't expect a continous rise because it doesn't exist. Wether you like it or not, we were going to have a decrease even  if we are in good run.

[STT]

Its the 200 day average, nothing unexpected to immediately sell off.  Combine that with trade coming off easy weekends and its just par for the course.



I'm watching just a short term pattern to see if it can close lower and perhaps we get a little bit more movement.    Otherwise just staying in this area is quite a bullish hold, it doesnt need to cling to the highs as if it will fall to its death otherwise.   A pull back is fair weather for monday open.

[karanggatak]

I think this is only a correction. or this is the work of the pope who made use of the Chinese New Year moment. yesterday someone had predicted that the price of bitcoin would decline during the Chinese new year. Chinese New Year falls on January 25th. if this prediction is correct then in the next 5 days it's likely that bitcoin will continue to decline. but this is only a prediction that can be true or false.

[Fundamentals Of]

Everything is under control. Dipping down $700 is normal if the rise was also as high or even higher. This is nothing serious to panic. This is a normal correction. In other words, this is the buying time in between pumps.

[blckhawk]

Hitting the $9k mark seemed to have triggered massive sells since buyers from lower $8000 or even $7000 have taken their profit. There's nothing to panic, and no FUD to feel, it's just because of normal volatility and trading activity that sets off these dumps. As soon as it hit $9k, investors must have flooded the sell orders in hopes of getting out of the market at gains of over 12%.