Bitcoin breaking the $40k level caused an immediate flash crash of $4k down to the $36k level. I was lucky enough to be able to watch this in real time, as it was very similar to the last flash crash we had from $33k to $28k.
This crash is much less scary than the last one. It was bought back up even faster than the last time, and the price is currently back up at $38.5k. The market is probably going to need another 24 hours to cool off.
I fully expect this level to stabilize. When it does ETH will probably spike up 30% again like it did last time along with a handful of the other alts.
As stated earlier, at this point I'm not worried about a retrace until I see FOMO buying or a $50k price-point. It's also important to note that the previous flash crash was $5k in price and this one was $4k in price. So not only was this flash crash less dollars in terms of absolute price, but also less percentage because it occurred at a higher level.
I saw this dump happen in real time, and the results were nothing but outstandingly bullish. This $40k level will likely stabilize within 24 hours, and I expect ETH to outperform again and spike up at least 30% in the very near future.
Bears are getting absolutely wrecked. Every whale that tries to dump the market regrets it, and more and more whales are becoming afraid to sell.
We've thus far seen 3 of these FUD dumps that ended with the bulls buying up that liquidity instantly. So far, there has been none of that same volatility in the upward direction, which is what I'll be looking for when trying to gauge when the top is in. My guess is $50k but I guess we'll have to see when we get there.
