3 Likely Reasons Why Bitcoin Price Crashed

The moment many traders have anxiously anticipated arrived this morning as Bitcoin price plunged below $7,800 and eventually settled near $7,400.

Let's explore several reasons that caused the price of Bitcoin to suddenly plunge today.

Technicals: support finally gives after 9th trySince dropping from $9,500 on Sept. 24, Bitcoin has dropped below $7,800 on eight separate occasions and today's price dump is the ninth.

Today's price dump liquidated $200 million worth of leveraged longs at BitMEX. According to twitter analyst "Taiwandan" the Bitcoin liquidation at BitMEX could have begun with a 3,600 BTC sale at Bitstamp.

Data from TradingView also shows that price dramatically fell at Bitstamp shortly before cascading significant price drops occurred at other major exchanges.

Mr. Zuckerberg goes to WashingtonSimilar to traditional markets, the crypto sector is heavily influenced by media and it's possible that recent news might have exacerbated the shock to Bitcoin's price.

Google's quantum breakthrough spooks Bitcoin investors?Additional news that could be impacting Bitcoin's price is Google's announcement that a quantum computing breakthrough has enabled one of its machines to carry out tasks that would take a supercomputer 10,000 years to execute.

The 111 Daily Moving Average still appears en route to cross below the 128 DMA and today's downside break pulled the price far below the 20-MA of the Bollinger Band indicator.

Prior to the break, the Moving Average Convergence Divergence indicator was trending upward on the daily time frame whereas Bitcoin price had descended since Oct. 11.One could also argue that the head and shoulders pattern on the daily was completed and repeated failure to break above $8,300 increased the chance that BTC price would take the southern route.

If Bitcoin price can find support at $7,300 to $7,400 after a few 4-hour candle closes, traders may be induced to re-enter long positions.