After a sudden spike hitting Bitcoin to a $3000 mark, the beginning of the week brought down Bitcoin’s price drastically down by over $400 in a matter of hours
Along with Bitcoin Ethereum also crashed, briefly after touching $420 on many exchanges. As the price had diverted too far from any technical analysis indicators, such a correction was necessary for both the cryptocurrencies.
The negative market pressure was lead by the liquidation of long positions of Okcoin. As there has been no recent negative news that could have caused panic sell, suggesting that the current price action seems like a product of traders’ speculation.
To correct the market, the liquidations hit at some point and create unsustainable pressure on the market. Okcoin’s liquidation causing massive movements in the market, which is an inherent problem with margin trading, isn’t the first or last time.