A sudden charge to $12,200 causes instant pain for shorters as one analyst described it as a “clear fake-out to take liquidity.”
Cryptocurrency market daily snapshot, Aug. 17. Source: Coin360
BTC price “clear fake-out” costs shorters big
Data from Cointelegraph Markets and Coin360 showed BTC/USD hitting $12,200 briefly on Monday.
A subsequent correction managed to erase the gains and more, bouncing at $11,785 to recross the $12,000 mark — all within a matter of minutes.
At press time, Bitcoin circled $12,080, equating to 24-hour gains of 2.5% and the highest price for over a year.
BTC/USD 24-hour chart. Source: Coin360
Despite the psychological significance of $12,000, few appeared convinced that Monday’s move upwards was a legitimate watershed moment.
“Clear fake-out to take liquidity,” Cointelegraph Markets analyst Michaël van de Poppe summarized.
On BitMEX, the results of the few minutes’ volatility were plain to see — $22.1 million of shorts liquidated on Monday, compared with just $1.7 million the day before.