Bitcoin - Liquidation volatility

29 Oct 2021
We’ve seen a rapid downward spike in Bitcoin (BTCUSD) overnight, off the back of another leveraged-longs wipeout, with price diving off a cliff from its recent all time highs of 67000.

(Source: Tradingview - Past performance is not indicative of future performance.)

Plummeting down to 56245 in yet another flash-crash, as previously seen on 13 October 2021, the digital currency quickly snapped back to 61254 before resuming a pattern of HHs and LLs.

With signs clearly showing momentum to be back in play and with price pushing the one hour candle firmly above both the 20 EMA (red) and the 50 EMA (blue), could price now be looking to consolidate before an upward breakout or are the sellers waiting on the sidelines eyeing moves lower?

A break above 62000 could give the bulls conviction to trade long, while equally a move below 60400 could see the bears resume the selling pressure.

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