Bitcoin price collapsed faster than it was growing

Collapsed on Thursday at 9%, to $17 200 on the background of mass liquidation of leveraged positions. The correctional decline may continue, experts warn.

The fall could have been triggered by large investors - "crypto-kits. According to analytical service Cryptoquant, they began transferring BTC stocks to exchanges - probably for sale.

"CoinTelegraph reported that shortly before the collapse began, the All Exchanges Inflow metric showed an increase in bitcoin placements on exchanges, a direct indication of the whales' intentions to sell their assets," notes the FxPro analyst team.

One of the main reasons for bitcoin's decline was the massive liquidation of leveraged positions, according to Stack Funds CEO Matthew Dibb. "Bitcoin has become a victim of massive liquidations of leveraged trades on major derivatives exchanges," said the expert.

During the day, the amount of liquidated positions on cryptocurrency derivatives amounted to $2 billion. The downward movement could also be strengthened by the resumption of the possibility of withdrawal of funds from a major cryptocurrency exchange OKEx, writes forklog.

Coinbase CEO Brian Armstrong shared his concerns about U.S. President Donald Trump's administration plans to tighten controls over cryptocurrency users.

"Rumors reached us last week that U.S. Treasury Secretary Mnuchin plans to accelerate the introduction of some new rules for local cryptocurrency wallets before his term ends," Armstrong wrote. In his opinion, the initiative would require Coinbase and other financial companies to verify non-custodial wallet owners before withdrawing funds.

Amsterdam Stock Exchange analyst Michael van de Poppe warned in a column on Cointelegraph that the cryptocurrency may continue to fall in price as its price has fallen below the support level of $18.5 thousand, writes RBC.

The closest target for bitcoin is in the $15,800 to $16,300 range, Poppe said. He called it a key . As long as the price stays above it, we can expect growth to resume. If the level does not hold, it is likely to fall to $13.8 thousand - $14.2 thousand, the expert predicts.

Earlier, the fall of bitcoin to $12 thousand predicted the CEO of the fund BKCM Brian Kelly. He pointed out that traders opened too many long positions. Also in favor of the decline is a strong influx of users to the market and the chaotic rise in the price of altcoins.