Bitcoin plunges to $90K, wiping out over $400M in long positions in minutes

• Bitcoin tests resistance after touching $100.000.
• Liquidations exceed US$300 million in minutes.
• Sudden recovery after a sharp fall.

In a sudden and shocking move, Bitcoin experienced a sharp 6% drop in just five minutes on December 5, falling below $93.000. Specifically at the end of the day, the price of the cryptocurrency plummeted from $98.338 to $90.500, according to information from the Binance platform.

This decline not only surprised traders but also resulted in the liquidation of over $300 million worth of long positions over the course of an hour. The liquidations in question extended the day’s losses to a total of $404 million, according to data aggregated by CoinGlass.

After the initial scare, there was a partial recovery in the price of Bitcoin, which adjusted to around $96.500 at the time of the last update of this analysis. This recovery movement, although a positive response, still leaves many investors cautious and analyzing the markets for next steps.

The incident comes a day after Bitcoin briefly surpassed the $100.000 mark for the first time, a milestone that had significantly excited the global cryptocurrency community. The event underscores the inherent volatility of the cryptocurrency market, where dramatic gains can quickly turn into equally significant losses.