Bitcoin Flash Crashes From $79,500, Wiping Out $500 Million as RSI Hits 7-Year High
Updated
Updated · Yahoo Finance · Aug 22
Bitcoin Flash Crashes From $79,500, Wiping Out $500 Million as RSI Hits 7-Year High
1 articles · Updated · Yahoo Finance · Aug 22
Summary
$79,500 gave way to a sudden slide toward $76,300 on Saturday, leaving Bitcoin near $77,260 after more than $500 million in long positions were liquidated within minutes.
A 4-hour RSI at its highest level in more than seven years signaled overbought conditions, with analysts saying readings above 80 to 90 often mark short-term demand exhaustion rather than the end of an uptrend.
$1.35 billion in total crypto liquidations over 24 hours underscored the broader shakeout, even as Bitcoin still held above its weekly bull market support band after a 22% weekly run-up.
Analysts are split on what follows: some warn of a local top and deeper pullback, while others still see momentum carrying Bitcoin toward $83,000 to $88,000 if $75,000 to $76,000 support holds.
Traditional indicators scream Bitcoin is overheated, but will unprecedented Treasury liquidity injections render these historical warning signs completely obsolete?
With a record $1.8 billion wiped out in minutes, could Bitcoin's flash crash be a trap for retail traders while institutions quietly accumulate?