Bitcoin drop caused by 5000 BTC dump; CME futures gap filled, bull signal?

17 May, 2019
by Will Heasman
Bitcoin
Bitcoin drop caused by 5000 BTC dump; CME futures gap filled, bull signal?

Just a few hours ago Bitcoin and the wider cryptocurrency market received a sudden shock as Bitcoin plummeted from around $7800 to $7200 within 20 minutes across major exchanges including Coinbase, Bitfinex, Gemini and Bittrex. The worst of the pain was felt on Bitstamp with the exchange reporting a flash crash down to $6,200. So what happened? And where is Bitcoin going next?

Why did Bitcoin dump?

Bitstamp appears to be the quasi-patient zero today as reports relay that a 5000 BTC sell order swept the market into panic mode.

According to speculation, The order was set at the quizzically low price, causing the market to correct and initiating a domino effect from market to market throughout the crypto ecosystem.

While other exchanges weren’t as affected, the impact still hit hard, with most reporting a loss for BTC of $600.

BTC managed to regain some stability in the time since the dump, currently standing at a price of $7320

BTC/USD Chart provided by Tradingview

What’s next for Bitcoin?

Luckily this dump doesn’t seem to be the end for Bitcoin as the price bounced back fairly quickly shortly after the dip, presumably thanks to multiple buy orders down near $6K.

Interestingly, Josh Rager, a prominent crypto trader noted that the sell-off provided some bullish insight, with the CME futures gap filled:

Its been previously suggested that the gap in the CME futures would provide a crash due to the necessity of filling the gap:

With this gap filled and the subsequent bounce which followed it appears the worst of the bearish sentiment is over, and BTC may be able to continue higher.

What you think is next for BTC? Will we see another correction or can BTC continue on its parabolic journey to the top?

Let us know your thoughts in the comments!

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