Bitcoin (BTC) tested $35,000 support into the Nov. 14 daily close as sell-side pressure sparked multiday lows.
BTC price sheds $1,000 in an hour
The largest cryptocurrency found support at the $35,000 mark, forming a springboard to recover to around $35,600 at publication.
The volatility came hours after what at first looked like a positive news event for Bitcoin and crypto, with United States inflation slowing beyond expectations.
At the same time, however, analysts noted that beyond smaller retail investors, there was little appetite for buying BTC at prior levels around 18-month highs.
once again spot buying on long liquidations & deleveraging
overall though still want to see more of a spot premium
spot premium & spot driven uptrend is what you want to see pic.twitter.com/VoXrWQDGMc
— Skew Δ (@52kskew) November 14, 2023
“On November 3, Bitcoin whales started booking profits as the $BTC price rose from $35,000 to nearly $38,000,” one such take from popular social media commentator Ali noted.
“More than 15 wallets with over 1,000 BTC sold or redistributed their holdings.”
An accompanying chart from on-chain analytics firm Glassnode showed that the cohort of whale wallets is now at its lowest number in around one month.
Uploading prints of the Binance BTC/USDT order book to X (formerly Twitter) following the inflation data, meanwhile, monitoring resource Material Indicators reiterated the need to expect periods of downside within a broader Bitcoin uptrend.
“Market seemed to like the Core Inflation Report, but don’t let that fool you into thinking ‘up only’ will be sustainable,” part of the previous commentary read.
“There are no straight lines. The market is testing your patience and conviction.”
A subsequent post showed bid support moving closer to spot price — from $33,000 to $34,500 — while whales sold off.
— Material Indicators (@MI_Algos) November 14, 2023
Long liquidations hit highest in months
Traders themselves appeared to be caught unaware by the BTC price reversal.
Data from on-chain monitoring resource CoinGlass showed the highest volume of daily long BTC liquidations in several months.
These totaled $120 million for Nov. 14, roughly equal to the short BTC liquidations, which accompanied Bitcoin’s spike to $38,000 last week.
Cross-crypto longs were liquidated to the tune of nearly $300 million.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.