- November 16, 2023
- Posted by: [email protected]
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Bitcoin faced a considerable setback, dropping by $1,000 within a single hour, encountering a cascade of liquidations that targeted late Bitcoin long positions. The cryptocurrency tested the critical support level of $35,000 during the daily close on November 14, marking multi-day lows amid heightened sell-side pressure.
Market data from Cointelegraph Markets Pro and TradingView revealed a swift retreat in BTC price action, witnessing a substantial drop in value within a single hourly candle. Despite this decline, Bitcoin managed to find support at the $35,000 threshold, serving as a foundation for recovery to approximately $35,600 at the time of publication.
Interestingly, this surge in volatility followed what initially appeared to be positive news for Bitcoin and the broader crypto market, as United States inflation reported a slowdown beyond expectations. However, analysts noted a lack of enthusiasm for purchasing BTC at previous levels, especially among larger institutional investors.
On November 3, Bitcoin whales initiated profit-taking actions as the BTC price surged from $35,000 to nearly $38,000. A comment from popular social media figure Ali highlighted this trend, indicating that over 15 wallets, each holding more than 1,000 BTC, either sold or redistributed their holdings. A corresponding chart from on-chain analytics firm Glassnode underscored that the number of whale wallets is currently at its lowest point in about a month.
Following the release of the Core Inflation Report, a Binance BTC/USDT order book snapshot on X (formerly Twitter) by monitoring resource Material Indicators emphasized the necessity of anticipating downside movements within the broader uptrend of Bitcoin. The market sentiment seemed to favor the report initially, but the commentary warned against assuming a sustained “up-only” trajectory, emphasizing the inevitable testing of investor patience and conviction.
A subsequent update revealed bid support adjusting closer to the spot price, ranging from $33,000 to $34,500, while significant sell-offs occurred among whale investors. Notably, traders appeared caught off guard by the reversal in BTC price, with on-chain monitoring resource CoinGlass reporting the highest volume of daily long BTC liquidations in several months, totaling $120 million on November 14. This amount was roughly equivalent to short BTC liquidations accompanying Bitcoin’s spike to $38,000 the previous week. Additionally, cross-crypto longs faced substantial liquidations, reaching nearly $300 million.
