BTC price pressure sees sellers take out existing two-year macro lows, but optimism over a relief “pump” is building.
Bitcoin (BTC) liquidated $200 million of long positions on Nov. 8 as BTC price briefly tumbled to two-year lows.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC price sets new two-year low
After initially rebounding over $20,000 on news that the embattled FTX might be bought out by competitor Binance, panic returned after the Wall Street open.
BTC/USD lost $2,000 in under two hours, seeing a sudden plunge that set a low of $17,120 on Bitstamp.
The last time the pair traded at that level was in late November 2020, meaning Bitcoin managed to beat the previous macro lows of $17,600 set in June this year.
BTC/USD 1-week candle chart (Bitstamp). Source: TradingView
Data from the Binance order book showed the sudden cascade downward puncturing solid buy support at $18,000.
At the Nov. 8 daily close, an area of interest for trade volume was around $18,400 — a zone still in play at the time of writing nearly 12 hours later.
BTC/USD order book chart (Binance). Source: Material Indicators/ Twitter
Figures from on-chain monitoring resource Coinglass, meanwhile, tracked major pain for long investors caught out at the wrong time.
BTC long liquidations across exchanges totaled $214 million for Nov. 8, while cross-crypto longs were liquidated to the tune of $670 million.
Combined with shorts, total liquidations for the day were $915 million.
Crypto liquidations chart. Source: Coinglass
“Important weeks ahead”
Analyzing the situation, popular crypto commentators were cautious about calling an end to price turmoil.
Related: Why is Bitcoin price down today?
“Way too soon to know how this resolves, but the fact we are seeing another exchange-driven liquidity crisis at this point in the macro structure is really quite something,” a normally optimistic TechDev tweeted:
“Important weeks ahead.”
Others acknowledged that they themselves had fallen foul of volatility, while beyond crypto, the analysis looked for potential silver linings.
For trading account IncomeSharks, weakness in the United States dollar over the ongoing midterm elections was a promising sign for risk assets.
“Looks ready to drop below support,” it wrote about the U.S. dollar index (DXY) on the day:
“Stocks looking good. Nasty black swan event ruined the price action for Crypto but once that taste is out of people’s mouths we should see $BTC and $ETH put up a little rally. Once again the issue is not with the assets themselves.”U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView
Nov. 10 was already due to be a volatile day for the week, with U.S. Consumer Price Index (CPI) inflation data due for the month of October.
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