Why Bitcoin price just flash crashed 6% after rejecting at $18.5K

Why Bitcoin price just flash crashed 6% after rejecting at $18.5K


The price of Bitcoin (BTC) dropped sharply after approaching $18,500 on Binance and Coinbase. The plunge took place as large sell orders were spotted on both spot and futures exchanges.

BTC/USD 15 minute chart. Source: TradingView.com

As Cointelegraph previously reported, traders anticipated a pullback as the price of BTC neared the $18,000 to $19,000 resistance zone. Upon its first retest of the area in nearly three years, the market saw a strong reaction.

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Bitcoin confirms $18.5k as a key near-term resistance area

There are two main reasons why Bitcoin saw a swift drop near $18,500, and this caused other cryptocurrencies like Ether (ETH) to correct even harder.

First, the $18,500 level remains the biggest resistance level before a new all-time high above $20,000. Hence, it is a key area of interest for sellers to defend, as breaching $18,500 would raise the chances of a broader rally.

Second, an overwhelming majority of Bitcoin addresses are profitable as BTC tests an important

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