Bitcoin experienced a flash crash after breaking the $100,000 mark yesterday, briefly dipping to a low of $90,500 this morning. CryptoQuant analyst Maartunn published an analysis today stating that the sudden flash crash in Bitcoin’s price was actually foreseen by on-chain indicators, including excessive leverage and a slowdown in buying pressure. Glassnode co-founder Negentropic also issued a warning. (Background: Wall Street Bernstein: Bitcoin will replace gold within ten years, soaring to $200,000 by the end of 2025) (Additional context: Bloodbath! Bitcoin's flash crash dipped to $90,500, ETH briefly fell below $3,700, with over 210,000 liquidations totaling $1 billion) Bitcoin first broke through the $100,000 barrier yesterday, reaching a peak of $104,088, marking a new milestone. However, amidst the market's excitement, Bitcoin began to weaken after 11 PM last night and experienced a flash crash to a low of $90,500 this morning, resulting in a 'double whammy' for the market, with over 210,000 liquidations in a single day. On-chain indicators predicted the flash crash. In response, CryptoQuant analyst Maartunn published an analysis today stating that the sudden flash crash in Bitcoin’s price was already anticipated by on-chain indicators. First, the net buying volume on Binance before the Bitcoin flash crash indicated a large amount of buying pressure, suggesting a potential slowdown in buying. Net buying volume on Binance. Source: CryptoQuant Second, the leverage-driven surge indicated significant risks. The recent rise in Bitcoin was driven by leverage, with the open interest growing by over 15% before the flash crash. Changes in Bitcoin's open interest. Source: CryptoQuant Maartunn stated that the two major signals mentioned above, coupled with the market sentiment being in a state of 'extreme greed,' with retail demand measured over the past 30 days reaching its highest level in four years, resulted in the market experiencing the largest scale of long liquidations in at least 1.5 years, with over $150 million in long positions liquidated, and Bitcoin crashing by 10%. Glassnode issued a warning. At the same time as Bitcoin’s flash crash, Glassnode co-founder Negentropic issued a warning, pointing out that as Bitcoin surpassed $100,000, the Bitcoin Fundamental Index (BFI) began to weaken: This indicator usually sends early warning signals, and once confirmed, it is hard to ignore. For example, when Bitcoin reached a local peak in the first quarter of this year, the BFI indicator signaled the exit timing before a significant adjustment in BTC price. Currently, Glassnode will continue to monitor this indicator, but the bull market still has momentum. Not to Rain on the Parade, But… Bitcoin has crossed $100K, yet the Bitcoin Fundamental Index (BFI) is starting to weaken. Should we be concerned? This indicator often sends early warning signals, and once confirmed, they’re hard to ignore. Take the market peak in Q1… pic.twitter.com/MnuJtmrB9V — 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) December 5, 2024 Although Bitcoin experienced a flash crash, Wall Street investment bank Bernstein stated today that its belief in Bitcoin transcends the cyclical fluctuations of the market, believing that increased institutional adoption and clearer regulations will act as catalysts for unprecedented increases in Bitcoin’s price. The institution still believes that $100,000 is not the final milestone, predicting that Bitcoin will reach a cycle high of $200,000 by the end of 2025. Related Reports: Financial Times apologizes: If 14 years of negative BTC reporting caused you to miss the opportunity to buy Bitcoin, we are very sorry. Will Bitcoin see a major correction after breaking $100,000? Analysts: Don’t be too pessimistic; altcoin season will be even hotter. Pain! The German government sold Bitcoin six months early, missing out on $2.2 billion, and El Salvador's BTC holdings are approaching 6,000 coins. "Bitcoin flashes crash after breaking $100,000! Multiple indicators warn of BTC correction: excessive leverage, slowdown in buying..." This article was first published on BlockTempo (the most influential blockchain news media).

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