Bitcoin on September 7, 2021

Away from $60,000Bitcoin (BTC)

flirted for a brief moment with $43,000, as the last few days raised hopes of a push to levels near $60,000. The crash has taken the markets by surprise, with explanations coming from traders and analysts mostly sounding like accusations at the moment.

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Bitcoin crash: leverage abuses

Bitcoin forms a low around $43,000 on Bitfinex today, September 7, 2021. Bitcoin only stayed below $46,000 for a few minutes. It is trading at $46,391 at the time of writing this article and is currently recording a daily loss of 9.47% amounting to nearly $4,900.

How do we explain this market collapse

after Bitcoin made a foray above $52,000? According to CryptoDiffer, exchanges have seen a massive sell-off amounting to more than $3.54 billion on derivatives markets in the last 24 hours. For analyst Willy Woo, derivatives markets are also responsible for today’s sharp drop, as with most crashes:

“I don’t know exactly what just happened, but here is the sequence of events. The sell-off took place primarily in the derivatives markets (as most crashes do).”

CryptoDiffer : Bitcoin subit un krach le ramenant aux 43 000 $, les exchanges enregistrent environ 3,54 milliards de dollars de liquidation sur les marchés dérivésCryptoDiffer : Bitcoin subit un krach le ramenant aux 43 000 $, les exchanges enregistrent environ 3,54 milliards de dollars de liquidation sur les marchés dérivés

Trader Michael van de Poppe also cited the liquidation of traders’ over-leveraged positions causing a chain reaction as the cause of the blood-red market.

Michaël van de Poppe évoque des liquidations des positions surendettées entrainant une réaction en chaine pour expliquer l'effondrement du cours du Bitcoin.<img src=”https://www.notion.so/image/https%3A%2F%2Fs3-us-west-2.amazonaws.com%2Fsecure.notion-static.com%2F2d1e30e7-4363-4cd3-b98c-568539e6b9a3%2Fpoppe-krach.jpg?table=block&id=73a58308-dc6d-4d59-b0e2-20d017416382&spaceId=6162a0da-1b20-4256-b8ab-01dbead01f73&width=3070&userId=32dd5d0b-e114-40a4-8888-b425a68ff14b&cache=v2″ alt=”Michaël van de Poppe mentions liquidations of over-leveraged positions leading to a chain reaction to explain the Bitcoin price collapse.” />

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Collapse or logical correction: whales just as guilty?

For trader and analyst Scott Melker, the responsibility for the crash lies with the whales in a context that should however be bullish for Bitcoin, with the legalization of the latter by El Salvador

: Pour le trader Scott Melker, les baleines sont responsables de la chute de Bitcoin aux 43 000 $.Pour le trader Scott Melker, les baleines sont responsables de la chute de Bitcoin aux 43 000 $.

“The whales are getting rid of Bitcoin the day El Salvador gives it legal tender.”

Technically, can’t today’s crash be interpreted as a logical major correction after the cryptocurrency market cap rose 16% from August 30, 2021 to September 6, 2021? Bitcoin wasn’t the only one to make significant inroads during this period. Altcoins likeEther (ETH)

and Solana (SOL) also performed well.

This Bitcoin crash contrasts with predictions of a $100,000 Bitcoin

by the end of 2021, an outlook that no longer comes solely from PlanB but also from analysts who are given credit by those in traditional finance.

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