Around 5:55 CET, bitcoin was unable to hold the $50,000 mark and broke lower. Until 6:20 CET, it looked like the price would stabilize and the $50,000 was broken up and down several times. But then at 6:21 CET, when the $48,000 didn’t hold either, the Bitcoin price crashed to just over $41,000 within a few minutes. At 6:27 CET, the daily low was then reached and a strong bounce to $48,000 followed.
The price now seems to be stabilizing and we are just below the $48,000 mark.
As we can see, the support area between $40,000 and $44,000 has held. I expect a recovery in the coming days, however, $41,000 could be tested again. The flash crash may have drained a few accounts, especially from those who were invested with high leverage.
It can’t be said enough. Leverage trading is extremely dangerous. Those who lost their money last night have nothing left to re-buy now.
It should only be invested in bitcoin for the long term and in no case with leverage.
Needless to say, I am still bullish. I bet El Salvador, Michael Saylor and many other Wales are now taking the opportunity to buy heavily now.