Bitcoin prints biggest hourly candle in history after BTC bounces sharply to $ 54K

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Bitcoin (BTC) fell below $ 50,000 on February 22 as a correction accelerated at the Wall Street opening to generate 20% daily losses before a strong bullish response.

BTC / USD (Bitstamp) 1 hour candle chart. Source: Tradingview

Bitcoin loses $ 6,000 in minutes

Data from TBEN Markets and TradingView shows that BTC / USD fell sharply during Monday’s session, hitting a low of $ 47,400.

After reversing to all-time highs of $ 58,312 on Sunday, Bitcoin fell nearly $ 7,000 in less than an hour, causing intense volatility, which has continued at the time of writing.

“Almost an hourly candle of $ 7,000. This must be by far the biggest hourly movement in history,” analyst Scott Melker reacted.

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Earlier, TBEN Markets analyst Michaël van de Poppe had pointed out that the area between $ 50,500 and $ 52,000 was crucial to hold in order to preserve the chances of a continuation of the short-term bull run.

In a new analysis on Monday, he noted that historically this time of year has not been when crypto markets perform best.

At the time of publication, Bitcoin had recovered to return above $ 53,000.

Buyers line up to steal less than $ 50,000 Bitcoin

According to reports on Twitter, the action accompanied New criticism of Bitcoin from US Treasury Secretary Janet Yellen, who allegedly called it “ineffective” while repeating claims that it is used in criminal activity.

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In a curious coincidence, Sunayna Tutejahe, a Bitcoin supporter and well-known financial innovator, became the new innovation director at the Federal Reserve.

“OUCH! #Bitcoin plunges> 10% on concerns that prices are excessive. Elon Musk tweeted on Saturday that prices” look high “,” market commentator Holger Zschaepitz tweeted, citing a Bloomberg headline that focused on Musk’s spontaneous remarks last week.

“The massive sell-off this week is the result of some of the exuberant easing of the past week, as well as a much needed unwinding from the over-leveraged long positions,” added Ross Middleton, co-founder of the DeversiFi exchange, to Reuters.

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For those familiar with the Bitcoin and crypto markets in general, even the sharp drop was just business as usual.

“After a while, you become immune to these price drops. It just makes you stack up even more, ”popular Armin van Bitcoin Twitter account replied.

Coinbase premium vs BTC / USD chart. Source: CryptoQuant

Contributor Joseph Young further highlighted the so-called Coinbase bounty return to the positive almost immediately once the bottom of $ 47,400 reversed, reaching $ 500, a bullish sign. Melker, in turn, highlighted the buying volume that the drop had triggered.

As TBEN reported, various factors converged to signal that a correction was imminent before it even gained momentum, including plans among whales to sell BTC.