Several crypto traders found themselves unsure after the Bitcoin price crashed hard below a sum of $43,000. This has definitely led to major liquidations in the derivatives markets with around $3.54 billion liquidated. The bullish sentiment had been on a major increase ever since the crypto industry came out of the holiday weekend of Labor Day in the USA.
This has also coupled with the cryptocurrency being recognized as legal tender in the nation of El Salvador. Interestingly, this celebration went down pretty quickly after the cryptocurrency went down by 16%.
Bitcoin Comes Down Hard
According to data received from TradingView and Cointelegraph Markets Pro, there has been a major sell-off in Bitcoin which began in the early hours of trading and soon gained major speed into midday as the price of the cryptocurrency went down to a sum of $42,837 as most of the dip buyers tried to hold it back to a price above $46,500.
Needless to say, several traders have already warned others about this major sell-off, and what seems to be the major lookout while the market tries to come out through the chaos of this day.
Willy Woo, the on-chain analyst on Twitter, was able to provide a fact-focused analysis of this current market state of Bitcoin. He posted a tweet on the 7th of September which noted that the wider financial markets had already opened the day to a major risk-off, which in turn put a lot of pressure on the market of cryptocurrency as the day kept progressing.
The sell-off which ensued further resulted in almost $1.1 billion worth of liquidations of the cryptocurrency, but the data on-chain hasn’t suggested that most investors seem to be in a rush to shut their positions down.
Michael van de Poppe, contributor of Cointelegraph as well as a market analyst, has provided further analysis of the 7th September move of Bitcoin, where he highlighted that overleveraged traders had a very important role to play in the price action of the day when the cryptocurrency crashes.