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Bitcoin News & Updates / 'Classic top setup'? Bitcoin price flash crashes on Kraken after all-time high
« on: November 30, 2020, 07:52:01 PM »'Classic top setup'? Bitcoin price flash crashes on Kraken after all-time high
A likely "stop-loss run" triggers a one-minute candle to more than $3,000 lower than Bitcoin spot price before a rebound, in extreme volatility.
Bitcoin (BTC) reached a new all-time high on various exchanges on Nov. 30, but one record, in particular, hit the headlines for a different reason.
Data from cryptocurrency exchange Kraken shows BTC/USD hit its highest ever price on its order book — then dove to $16,600 in seconds.
Kraken BTC price dumps $3,000
The reason for the crash, which will have liquidated a large number of positions and caused considerable pain for many a speculator, was likely what is known as a "stop-loss run."
Stop-loss runs involve large-volume traders who intentionally place large sell orders at a specific price point, then target where they think a large number of stop-loss positions reside. In this case, the target was around $16,600, near the location of last week's local bottom.
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