Bitcoin under 9,000 euros? You probably had to rub your eyes when you looked at the bitcoin course. This morning before five in the morning, bitcoin still happily fluctuated around 9,200 euros. But then it went quickly. Less than fifteen minutes later, the rate was 8,791 euros, a fall of more than four percent.
If you are new to the market, a price movement like this can be quite intense. But the cryptomarket is still relatively small and young. Large fluctuations like these are still part of it. So keep your cool, grab a tea and take the time to read this article.
$ 156 million in longs liquidated
You can bet on the bitcoin rate on the Bitmex crypto exchange. If you go short, you speculate on a fall in price. If you think the rate is going up, you go long. We previously wrote in a price analysis that many investors have gone long, so they expect the price to rise.
But the rate has just fallen this morning, and that is causing a chain reaction. The price is falling, and therefore long positions are closed. This ensures that the price falls even faster and more long positions are closed. And so on. You also call this a long squeeze.
But is this bad?
You can actually see it on the graph above, the course is now slowly picking up. And also on Twitter sentiment remains positive.
Trader Josh Rager states that $ 9,400 (8,500 euros) is an important level to keep an eye on. This has been a support since mid-June. If the bitcoin rate does not fall below this level, then nothing is wrong. But on the other hand, bitcoin can now still drop a few hundred euros.
Not really worried unless price breaks and closes below $ 9400 again
This is the area to keep an eye on pic.twitter.com/dLRAht4DD4
– Josh Rager ? (@Josh_Rager) September 19, 2019
And according to the Dutch crypto-analyst Crypto Michaël, the 21 EMA is an important level to monitor. EMA stands for Exponential Moving Average, which is a line that indicates the moving average of the price. Such a line can provide support in a bull market.
And overnight we’ve seen a drop on $ BTC.
Knowing that the 21 EMA is below us around $ 9,200-9,300 I’m still expecting that test.
While dropping a little / staying stable during this drop is also good, as they normally will outperform $ BTC when the market starts to grind up.
– Crypto Michaël (@CryptoMichNL) September 19, 2019
The chart below shows the 21 EMA on a weekly level. When the line is touched, the course makes a new movement up. Is that going to happen this time?
We also have to watch the calendar. On Monday, September 23, bitcoin launches its futures trading platform Bakkt. Investors expect that this launch can have a major impact on the bitcoin rate.
Exciting times so! Keep an eye on the bitcoin course and read our course articles to stay up to date on all news about the bitcoin course.