- The Bitcoin price is showing a huge sell-off as it has slipped from $ 60,900 to $ 51,541.
- This accident comes after rumors that the US Treasury is asking several financial institutions for money laundering using crypto-currency.
- BTC may bounce around the 61.8% Fibonacci level at $ 51,240.
Bitcoin price is experiencing a huge sell-out, leading to a breakthrough of a technical formation that has held it for more than three months.
Coinbase direct and Bitcoin price crash
On the 12-hour chart, the Bitcoin price plunged nearly $ 9,000, reducing it to $ 51,541. This accident seems to coincide with several sources on Twitter declaring that the US Treasury will charge financial institutions for money laundering with cryptocurrencies.
Although this crash is not related to the direct listing of Coinbase, Peter Schiff, an avid critic of cryptocurrencies, said:
Instead of being a watershed moment in the life of Bitcoin, the CoinbaseIPO may have marked the beginning of its death.
The collapse of the market led to long positions of $ 1.72 billion that were liquidated only in the last hour. Extending this range to 24 hours shows that 927,000 traders’ positions worth nearly $ 10 billion have been wiped out, with $ 68.73 million being the largest liquidation to date.
Bitcoin price is the first significant crash in February
The price of Bitcoin has fallen by 19% in the last three days and by 14% in the last 12 hours. This move caused a sell signal from the SuperTrend indicator, as BTC was cut by the 50 and 100 simple moving averages (SMA) on the 12-hour chart /
Areas of interest include the 61.8% and 50% Fibonacci retracement levels of $ 51,240 and $ 47,022, respectively.
BTC / USD 12 Hour Chart
On the other hand, if investors start buying the declines, the Bitcoin price could turn around and test the Fibonacci retracement level of 78.6% at $ 57,245.
Due to the large institutional demand, investors can pick up BTC quickly, which is now being sold at a discount.