Bitcoin (BTC) Suffers Flash Crash, Drops Below $23k

Bitcoin suffered a massive correction a few hours ago, losing $1,500 in value within the space of minutes. This correction came after the leading coin enjoyed a massive rally over the weekend.

Bitcoin (BTC) Price Correction Follows Bullish Weekend

After entering the weekend trading above $20k, BTC quickly surpassed the $22k mark creating new milestones on the way. The leading coin also hit a new all-time high of $24,209 on Sunday, according to data from CoinMarketCap.

Amid expectations that Bitcoin could make a surge towards $25,000, the leading coin suffered a major retracement today. Bitcoin plunged from $24,000 to as low as $22,420 within the space of a few minutes, wiping over $1500 from its price.

This retracement had been expected by key crypto analysts who had predicted a reaction from the markets. The downturn in price also followed a market-wide pullback in traditional finance with major European indices dipping in value.

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At the time of publication, Bitcoin has recovered slightly and is trading at around $22,600. This correction could sign that the bears are coming and subsequent support levels for the coin are at the $21,000 mark. However, a positive surge in value could see the asset move towards the $24k mark in the coming hours. If this happens, BTC could make a renewed push towards surpassing the $25k resistance mark.

 Altcoins Bleeding

As expected, the sudden dip of Bitcoin caused a ripple effect in the market with altcoins in the red. Ethereum dropped below $600 momentarily but has recovered slightly to trade at around $609. Nevertheless, the leading altcoin is down by 7% in the last 24 hours of trading.

This trend continues across the top 10 coins with XRP down 8.65%, Litecoin 9.52%, and Cardano 7.90%. The flash crash has also wiped about $28 billion from the market cap within 24 hours.  Bitcoin market dominance has also increased to 66.1% as several altcoins have lost heavily in the past few hours.

Btc

Bitcoin

$27.941
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0.89264%
price change

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Will this massive correction lead to the beginning of the crypto winter? It is still early at the moment. The coming hours will provide a clearer indication of what direction the market is swinging towards.