Grandmaster Flash Crash Takes Crypto Market Back A Week
Last Updated on 8 September 2021 by CryptoTips.eu
It’s like a jungle sometimes, it makes me wonder how I keep from going under. Yes Grandmaster Flash and the Furious Five knew what they were talking about 40 or so years ago already. The crypto market also wondered how it kept from going under when the market, which had steadily been climbing for a week now, got overheated and experienced a flash crash. At the time of writing, most major cryptocurrencies are still down at least 14%. Dutch analyst Michael van de Poppe claims there are plenty of opportunities at this point.
Taking a further look at the CoinMarketCap top 100 overview, we can see that Bitcoin itself is down 4% in the past week. It had been steadily rising and has now returned all its profits of the former seven days, so overall we are back at the same point
Analyst Willy Woo summarized the feeling of onlookers best when he said:
Not entirely sure WTF just happened, but that’s the sequence of events. The sell-off was mainly on derivative markets (like most crashes).
Fear and Greed
As always, Cryptotips provided a steady hand and a warning. Loyal readers will notice the last paragraph of our market overview yesterday which spoke about the overheating Fear and Greed index.
We stated:
Problem is that whenever this zone was reached for a few days in a row, it could also be a reading that a corrective move could be coming. So as always, do your own research and beware of what may come.
#Bitcoin lost that $49K level as crucial support and smacked through it.
— Michaël van de Poppe (@CryptoMichNL) September 7, 2021
What just happened?
Overleveraged positions getting liquidated in a chain reaction, causing a massive wick.
If this wick closes above $47/48K, it will be an outlier.
Opportunities.
24 hours later and it looks like a whole new world. Not that the trend has changed too much though, we’re still bullish in the long term. But beware of sudden spikes up or down.
