Bitcoin (BTC) fell below $ 50,000 on Feb.22 as a correction in the Wall Street opening gained momentum, causing 20% daily losses before the bulls reacted strongly.
BTC / USD 1 hour candle chart (Bitstamp). Source: trade view
Bitcoin loses $ 6,000 in minutes
Data from Cointelegraph Markets and TradingView show that BTC / USD fell sharply during Monday’s trading, hitting lows of $ 47,400.
After hitting an all-time high of $ 58,312 on Sunday, Bitcoin fell nearly $ 7,000 in less than an hour, causing intense volatility that was ongoing at the time of writing.
“Almost a $ 7,000 an hour candle. That must be by far the largest hourly step in history,” responded analyst Scott Melker.
Previously, Cointelegraph Markets analyst Michaël van de Poppe had highlighted the range between $ 50,500 and $ 52,000 as critical to holding to chances of the bull run continuing in the short term.
In a new analysis on Monday, he found that this time of year is historically not the time when crypto markets are performing at their best.
At the time of publication, Bitcoin had rebounded and traded back above $ 53,000.
Buyers line up to steal Bitcoin under $ 50,000
According to reports on Twitter, the move was accompanied by renewed criticism of Bitcoin from Treasury Secretary Janet Yellen, who reportedly described it as “inefficient” while reiterating claims that it was being used for criminal activity.
In a curious coincidence, Sunayna Tutejahe, a bitcoin advocate and well-known financial innovator, became the new chief innovation officer at the Federal Reserve.
“OUCH! #Bitcoin drops> 10% and worry prices are too high. Elon Musk tweeted on Saturday that prices” seem high, “” tweeted market commentator Holger Zschaepitz, quoting a Bloomberg headline that focused on remarks from Musk last week.
“The general sell-off this week is the result of some easing of exuberance over the past week, as well as a much-needed liquidation of overfunded long positions,” Ross Middleton, co-founder of Exchange DeversiFi, told Reuters.
For those familiar with the bitcoin and crypto markets in general, even the steep decline was just normal business.
“After a while you become immune to these price drops. That only makes you tougher,” replied the popular Twitter account Armin van Bitcoin.
Coinbase Premium vs. BTC / USD chart. Source: CryptoQuant
Contributor Joseph Young further pointed out that the so-called Coinbase premium turned positive almost immediately once the low of $ 47,400 reversed and hit a staggering $ 500 – a bullish sign. Melker again emphasized the extent of the purchase volume that the slump had triggered.
As Cointelegraph reported, various factors converged to signal that a correction was imminent before gaining momentum, including suspected plans among whales to sell some BTC.