• The bitcoin price is showing a massive sell-off as it fell from $ 60,900 to $ 51,541.
• The collapse came after rumors emerged that the US Treasury was charging various financial institutions for money laundering charges using cryptocurrencies.
• BTC could bounce around 61.8% of the Fibonacci retracement level at $ 51,240.

Bitcoin’s price is undergoing a massive sell-off, leading to a breakout of the technical formation that has held it back for more than three months.

Coinbase Direct and Bitcoin price drop

On the 12-hour chart, the price of bitcoin fell almost $ 9,000, dropping to $ 51,541. This collapse appears to coincide with multiple sources on Twitter claiming that US Treasuries will charge financial institutions for money laundering using cryptocurrencies.

While this block may not be related to a direct Coinbase listing, Peter Schiff, an avid cryptocurrency critic, stated:

Rather than being a watershed moment in the life of Bitcoin, CoinbaseIPO may have ushered in its death.

The market crash saw the closing of $ 1.72 billion in long positions in the last hour alone. Expanding this range to 24 hours shows that 927,000 trader positions worth nearly $ 10 billion were destroyed, with $ 68.73 million being the largest liquidation to date.

Bitcoin price witnesses the first significant drop in February

The price of bitcoin has fallen 19% in the last three days and 14% in the last 12 hours. This move triggered a sell signal from the SuperTrend indicator as BTC cut 50 and 100 Simple Moving Averages (SMAs) on the 12-hour chart.

Areas of interest include Fibonacci retracement levels of 61.8% and 50% at $ 51,240 and $ 47,022, respectively.

BTC / USD 12-hour chart

On the other hand, if investors start buying in recessions, the bitcoin price could reverse and retest the 78.6% Fibonacci retracement level of $ 57,245.

Due to the huge institutional demand, investors could quickly buy BTC, which is now for sale at a discount.