Bitcoin just flash crashed 1700 dollars in less than a few minutes. Is there a logical explanation for this?

And the answer is yes, there is a logical explanation. From technical analysis. The king of all types of analysis.(I'm being cringe at this point)

Let's look at what the heck happened.

Now I'm not going to go all technical analyst on you guys. I want this article to be below 500 words so you'd just have a quick understanding and move on with your life.

So Bitcoin's price is run by the people who own a majority of the supply. This is evident by the fact that price is "fractal" in nature, meaning it more often than not repeats some patterns it displayed in the past.

Now that we know that, what really happened?

It was a simple "liquidity fill" for the manipulators. Here's how they did it.

Bitcoin manipulators trade with really large sizes. Checking out whale alert, you can see multiple 4 and 5 million dollar trades in a single hour. Of course all these aren't coming from one person, but you'll notice that the direction they trade in (long or short) most often coincides. 

The thing is, they need their big orders to get filled without a ton of slippage.(that is the price at which you want to get filled, and the price at which you actually get filled). So how do they get their orders filled without being front run?

They simply engineer liquidity. (I have a course on this, so please leave a comment if you want a copy or check out my telegram here)

They engineer liquidity by trapping breakout traders at support or resistance levels. They make it look like price is breaking up or down, and get them to FOMO in. They then run the price down on those FOMO traders, and thereby fill their big sizes, since the breakout traders positions are in the opposite direction to their own trades.

That's exactly what happened here, but on a larger scale.

12k isn't even a significant level in Bitcoin's price. 13k is.

I feel this is an attempt by the manipulators to really push the price upwards and catch everyone off guard. This is my explanation on why price just flash dumped.

Thanks for reading.