Hello, and welcome to another article. In today's post, I'll be trying to give you the details behind why Bitcoin fell flat on it's face yesterday.

We had just breached the $10k resistance, and everything was going so well. So what the heck happened? Let's find out.

What many new people don't understand is that Bitcoin is made up of more than just chart analysis, or buying and holding. You must look behind the charts, to on chain analysis, whale movements, liquidation alerts and so on. These tools, coupled with chart analysis helps significantly reduce the noise on the chart and give you a clearer picture.

Unrequested advice aside, here are my reasons for why Bitcoin fell so hard.

First, right BEFORE the movement, about $101 million dollars of Bitcoin was moved by a single person. 101 million dollars. That's enough to crash the market when trading volume on some exchanges is 500 million dollars.

The person was seen selling his bitcoin on BitMex, at the very top of the move, which is exactly why BitMex fell to 8600 while other exchanges bottomed at 9200. Equally, after cashing out his longs, he equally entered a short at around the same time as a sort of hedge. That person has made a lot of money.

Many people still don't agree that that was what crashed the market. So we'll look for proof.

On the BitMex heat map, about 10 lots of 10 million contracts were offered for sale about an hour before the crash. 10 lots of 10 contracts at $1 per contract is equal to, you guessed it, 100 million dollars.

Assuming that still doesn't interest you, as you're a purely technical trader, then here's a technical explanation, without including the whale.

Bitcoin left a lot of resistances unchecked as it rallied to past 10k levels. As I have mentioned in all of my price analyses (which were largely unpopular, another reason why I stopped doing them), you can't just leave a resistance unchecked. Price has therefore returned to test those resistances.

Similarly, there was weakness around the 10k breakout. Very, very much weakness. There was hardly any follow through, and for a break of a 2 year Downtrend line, there must be follow through.

There are about 6 more possible reasons for this, but I have outlined the important ones here. 

I hope you now have a clearer view to use in your analysis today.

Thank you for reading.