Why Bitcoin price just flash crashed 6% after rejecting at $18.5K

Bitcoin confirms $18,500 as a key near-term resistance area.

There are two main reasons why Bitcoin saw a swift drop near $18,500, and this caused other cryptocurrencies like Ether.

Second, an overwhelming majority of Bitcoin addresses are profitable as BTC tests an important resistance area.

Following the initial drop to $17,214 on Binance, Bitcoin immediately recovered above $17,600.

The hourly chart of Bitcoin shows that the 20-day moving average hovers at $17,586.

Dan Tapiero, co-founder of 10T Holdings, expressed confidence in Bitcoin's medium-term outlook.

"Not often in life do you get to look at a chart like this one. Bitcoin to slice through highs imminently. 3rd wave up to dwarf the 2017 move and should persist for several years. Real fundamentals driving price unlike '17 speccy/ico retail flow. Big boys will buy dips now."

John Wick, a popular Bitcoin trader, echoed this sentiment.

A pseudonymous trader known as "Bitcoin Jack" said the dominant cryptocurrency is reaching the "Finale" of its short-term cycle.

There is some upside left for Bitcoin following the recent pullback, but he notes that more longs or buyers could be trapped, which could make another drop likely.