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The massive Bitcoin crash is nothing more than a trader as a trader, says OKCoin Executive

June 3, 2020

Bitcoin (BTC) prices fell more than $ 1,000 on some exchanges on June 2nd though According to Matthew Ficke, head of market development at OKCoin, the event appears to be the result of simple business.

“Price movements like the ones we saw yesterday tend to attract short-term traders who are trying to position themselves for a major breakout.”Ficke said the day before when Bitcoin rose dramatically above $ 10,000.

Bitcoin went up and down

Bitcoin’s price rose from $ 9,450 on June 1 to over $ 10,400 and dropped back to $ 9,275 the next dayThe first asset fell below $ 9,000 on some exchanges and reached $ 8,600 on BitMEX.

The massive Bitcoin crash is nothing more than a trader as a trader, says OKCoin ExecutiveThe massive Bitcoin crash is nothing more than a trader as a trader, says OKCoin Executive

Ficke pointed to the price level of $ 10,400 as a historically significant area since autumn 2019Bitcoin has visited this zone three times and is unable to overcome it with considerable staying power.

“It is likely that there were short settlements in the surrounding areas.”Ficke explained about the action on June 2, “Active dealer positioning for breaks often manages risk by setting stop-stop levels.”It referred to stop losses, levels that traders set in advance and that automatically closed trading positions to avoid additional losses.

The OKCoin manager added:

“If the momentum doesn’t drive the market higher, its long positions can quickly become vulnerable. This momentum can exaggerate price volatility in the short term.”

Ethereum remains firm on the bull market

Regarding the recent bullish cryptocurrency prices, Ficke said Ethereum (ETH) could serve as a catalyst for the move.Since the halving of Bitcoin a few weeks ago, the asset’s market dominance has decreased.

“Cryptocurrencies as an asset class have received more attention, and awareness now seems to be paying off.”said Ficke, the OKCoin manager expects excitement about ETH 2.0 in the near future.

In addition, Bitcoin’s recent upward movement makes sense given the current economic and public uncertainty in the U.S., he said, adding:

“Some argue that the environment reminds the market that BTC can act as a hedge against excessive government influence as stocks are close to the pre-refuge level and many cryptocurrencies appear relatively attractive.”

Regardless of the rationale, knowledge of crypto assets continues to grow, which shows up in a number of categories, including growing interest in the startup floating point group for algorithmic trading technology.