Bitcoin hit a new high of $ 58,000 on October 12, according to CoinGecko. At the time of writing, Bitcoin is priced around $ 57,000 and is still pushing for higher levels of resistance. Bitcoin has recorded new monthly highs since the beginning of October and the most recent price has been a five-month high for the coin since May 2021.
Bitcoin’s gains have been over 35% for the past two weeks and around 18% for the past seven days. This recent bullish rally has been attributed to support from institutional investors.
Flash crash at Bitstamp
Although Bitcoin’s price movement is one of the most watched in the market, there has been a discrepancy on one of the leading exchange platforms. A trader took to Twitter and reported a flash crash on the Bitstamp exchange that saw prices drop to around $ 51,000 after a trader made a $ 40 million spot sale.
Despite the huge flash crash in Bitstamp, the price of Bitcoin on other cryptocurrency exchanges remained unaffected. Before the flash crash, Bitcoin was trading at $ 55,000 on the exchange before plummeting. An analysis of the crash also shows that around 212 bitcoins were sold during this period, which most likely caused the crash. Even so, the price recovered just as quickly.
Such crashes are commonplace in the crypto sector. The value of an asset can drop double-digit percentages in a matter of seconds, especially when there is a large sell-off. Altcoins are not spared from such break-ins either. Polkadot suffered a similar crash on its perpetual futures contract, which saw prices drop from around $ 33 to $ 0.20 earlier this year.
Bitcoin leads the way in crypto earnings
Bitcoin was one of the top performing cryptocurrencies this month. Bitcoin fell below $ 41,000 on September 30, but quickly rebounded over 30% to hit $ 57,000. Most of Bitcoin’s gains this month have been attributed to retail investors and whale addresses, who have amassed more coins during the slump.
Data from Google Trends has shown that despite the gains, retail investors do not yet have to participate in the bullish rally. This could suggest that there could be an even stronger bullish rally in the months ahead after these small traders enter the market.
On the flip side, the Bitcoin Fear and Greed Index shows that Bitcoin has moved into an area of ”extreme greed” due to recent price gains. When extreme greed is detected, it can lead to a price adjustment in the opposite direction.
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