Bitcoin has been moving sideways in the past day after a 20% dropped at the start of the week. The first cryptocurrency by market was showing strong conviction to the upside, but ultimately the excessive greed in the market could have played against the bulls.
At the time of writing, Bitcoin trades at $46,875 with a 1.2% profit in the daily chart.
BTC moving sideways after the crash in the daily chart. Source: BTCUSD Tradingview
A recent report by QCP Capital confirmed that the flash crash was preceded by an increase in leverage positions on the derivatives sector. The firm previously warned about the potential downside risk as derivatives were signaling “nervousness” amongst investors.
When the price of Bitcoin broke the $52,000 barrier, the outlook “worsened”, the firm said. In addition, there was a sentiment of “disbelief” in the market that the rally that took Bitcoin into those levels was unable to “fail”.
In previous months, May, June, and