Understanding Flash Dumps and Instant Recoveries in Crypto Markets
The cryptocurrency market is notorious for its volatility, often witnessing sharp dumps across Bitcoin and altcoins within a few candles, only to see an almost instant recovery. Let’s break down why this happens and the mechanics behind these rapid movements: What Causes a Flash Dump? 1. Whale Activity Large sell orders by whales can overwhelm the order book, clearing out buy-side liquidity and triggering a cascade of price drops. Whales might sell for profit-taking or even manipulate the m