Bitcoin price falls below $96,000, hitting a low since May 8. Market liquidations exceed $1B, driven by long positions.
Bitcoin has fallen below 96,000 USDT, according to Binance market data. It hit its lowest level since May 8. It is currently trading at 95,933 USDT. This is a decrease of 6.39% in the past 24 hours. Data from Coinglass indicates that there are significant liquidations in the market. Total liquidations across the market went to $1.022 billion in the past 24 hours. This was $887 million in long positions and $135 million in short positions.
Market Liquidations Drive Bitcoin’s Sharp Decline
The huge decline in Bitcoin’s price is directly linked to a domino effect of liquidations. Data from November 13 indicated $658 million in liquidations in 24 hours. Bitcoin has been responsible for around $165 million of this total. Early reports on November 14 helped us with $880 million in liquidated bullish bets. The market has witnessed one of the biggest leveraged position liquidations this year.
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There are also macroeconomic headwinds. Expectations for a Federal Reserve rate cut are chilling. This has made investors gloomy. Risky assets such as cryptocurrencies are especially affected. The market has been struggling during trading hours in the US. This trend has continued in the last few weeks with added bearish pressure.
A change in investor behaviour is also visible. Retail investor sentiment has soured during the crypto sell-off. Some analysts, however, see the potential for a short-term bottom. There has also been divergence in the performance of the markets. Cryptocurrencies are tanking, and traditional safe-haven assets such as gold and silver are booming. This is an indication of a flight to safety.
Market structure concerns are the additional factors that cause the decline. There have been repeated tests of the $100,000 support level. These tests did not have strength confirmation. This has reduced the structure of the market. It has also decreased buyer confidence. Therefore, it becomes more likely that there will be yet another drop. Some analysts are warning against buying at present levels. In this sense, they recommend waiting to see signs of confirmed strength before jumping back into the market.
Bitcoin’s Outlook Amidst Short-Term Headwinds
Despite the current downturn, however, some analysts continue to be bullish about Bitcoin in the long run. They think there are fundamental growth drivers intact. However, market strategists say the timescale for retesting 2025’s all-time highs this year is likely to be drawing to a close. The immediate future appears to be more of a challenge.
Sharply falling below $96,000 brings to light the sensitivity of the market. It points out the effect of cascading liquidations. The interaction of macroeconomic factors and investor sentiment is a complex environment. While long-term optimism is still the order of the day, short-term caution is advised.
Therefore, Bitcoin is still facing heavy pressure with the increase in liquidations. Moreover, weakening sentiment leads investors to safer assets. As a result, analysts expect more volatility in the near term. However, there is still long-term optimism. Even when they, traders prefer to be cautious and wait for stronger signals before going back into the market.
