Bitcoin Tests $35,000 Support Amid Sell-side Pressure; Traders Face High Liquidations
Summary:
Bitcoin (BTC) tested a $35,000 support level on November 14 due to sell-side pressure leading to multi-day lows. The volatility followed a seemingly positive news event—US inflation slowing beyond expectations. Despite this, analysts observed minimal interest in purchasing BTC at prior levels around the 18-month highs. The situation led many unprepared traders to liquidations, with data from CoinGlass revealing a significant volume of daily long BTC liquidations, the highest in months.
On November 14, Bitcoin (BTC) tested a $35,000 baseline as sell-side pressure resulted in multi-day lows. The subsequent rapid descent in BTC price dynamics saw a $1,000 drop within a single hour, as monitored by Cointelegraph Markets Pro and TradingView. Nonetheless, the foremost digital currency found a stabilizer at the $35,000 level, enabling an amendment to $35,600 at the time of reporting.
This turbulence follows a seeming optimistic news event for Bitcoin and the crypto market as US inflation decelerated beyond projections. However, it was observed that apart from minor retail investors, there was minimal interest in purchasing BTC near the preceding 18-month highs.
Following a period of profit booking by Bitcoin whales on November 3, when the BTC price escalated from $35,000 to nearly $38,000, over 15 wallets with 1,000 BTC or more either sold or redistributed their assets. A correlating chart from on-chain analytics company Glassnode demonstrated that the volume of these large wallets is now at a one-month low.
The Binance BTC/USDT order book indicated that despite a positive response to the Core Inflation Report, it does not guarantee a sustainable upward trajectory. The market's volatility is testing investor's patience and faith. Meanwhile, bid support is moving closer to the spot price, rising from $33,000 to $34,500, even as whales continue to sell off.
On the traders' side, many were ill-prepared for the BTC price turnaround. CoinGlass data revealed a significant volume of daily long BTC liquidations, the highest in several months, totaling $120 million on November 14. This amount is comparable to short BTC liquidations, which accompanied Bitcoin's ascend to $38,000 last week. The total liquidations across cryptocurrencies amount to nearly $300 million.
Note: This news article doesn't provide investment or financial advice or recommendations. All financial and trading undertakings come with risks. Readers should undertake their own due diligence when executing any decision related to these matters.
Published At
11/15/2023 8:26:57 AM
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