Bitcoin (BTC) reached a new all-time loftier on various exchanges on Nov. 30, but one record, in particular, hit the headlines for a dissimilar reason.

Data from cryptocurrency exchange Kraken shows BTC/USD hit its highest always price on its order book — and then pigeon to $16,600 in seconds.

Kraken BTC price dumps $3,000

The reason for the crash, which volition accept liquidated a large number of positions and caused considerable hurting for many a speculator, was probable what is known every bit a "stop-loss run."

Stop-loss runs involve large-volume traders who intentionally identify large sell orders at a specific toll betoken, so target where they remember a large number of terminate-loss positions reside. In this case, the target was around $16,600, nearly the location of concluding week's local lesser.

The result is a cascade of selling pressure level that very quickly delivers the event, if successfully estimated, but for the market to afterward rebound once the process is over.

Kraken XBT/USD 1-minute chart showing crash. Source: TradingView

Liquidity risk is always a given factor in exchange trading, and Kraken'southward one-minute wick down by $3,000 aptly demonstrates why traders should do caution around significant toll points.

Some other explanation, or perhaps one that contributed to the result, was investors choosing to leave at near $20,000 in society to avoid the costs of a sudden reversal at resistance.

Bollinger cautions over "classic top germination"

"OK, time to pay attention, $BTCUSD. That is a classic elevation setup," John Bollinger, creator of the Bollinger Bands volatility indicator, warned.

"No confirmation withal and the setup could easily be overrun, simply wise traders should wash their glasses."

When asked by a Twitter user if this is a local top or whether Bitcoin's price will become down from here, he responded that "For now, a potential local summit..."

Across Kraken, meanwhile, Bitstamp also reached its ain best loftier at $nineteen,869, with BTC/USD then falling toward $19,000, a level that the pair reclaimed just hours ago.

"For those who are feeling bullish nearly #Bitcoin, today is the day you've been waiting for," exchange Binance meanwhile summarized.