Bitcoin price plunges by over $850 in less than hour liquidating over $126 million in longs on BitMEX alone. The overwhelming of long orders once again provides liquidity for whales for a massive drop through dominant selling.
Prominent derivatives trader, Hsaka notes after the plunge,
$BTC $120m (contracts) liquidations on that last hourly, causing OI to get back below a billion.
Hence, the bullish hysteria in the market seems to be blowing off. The price of Bitcoin [BTC] at 2: 15 hours UTC on 20th February 2020 is $9575.
BTC/USD 4-Hour Chart on Coinbase (TradingView)
Just after the drop derivatives and crypto trader, XC, tweeted,
…Daily below 95 is the bear goal rn. LTF wise looking for a (bearish) continuation setup. $BTC
Head and Shoulders Bear Pattern
While the drop is momentary, the bearish candle looks ugly on most time frames – leaning towards invalidating of the bullish market structure. The head and shoulders pattern forming on the chart is leaning towards target at $8750 upon confirmation.
Moreover, the 200-Day Moving Average is also at $8890, invalidation of this critical support might be flip the sentiments of the market completely.
BTC/USD 1-Day Chart on Coinbase (TradingView)
The TD sequential on the daily is on a bearish count as well. According to Tone Vays, leading derivatives and crypto trader, the bulls market is looking weak with support levels to look at around $9000-$9100.