Bitcoin Price Drops by $1,000 in an Hour as Sell-Off Pressure Mounts
On November 14th, Bitcoin (BTC) tested the $35,000 support level before closing the day, resulting in a series of multiday lows. The cryptocurrency experienced a swift retreat, with its price falling over $1,000 in just one hour. However, BTC found support at the $35,000 mark and managed to recover to around $35,600 at the time of this writing.
The sudden volatility came shortly after news of the United States inflation rate slowing beyond expectations, which initially seemed like a positive development for Bitcoin and the broader crypto market. However, analysts noted that apart from smaller retail investors, there was little interest in buying BTC at its previous levels, despite reaching 18-month highs.
According to Ali, a popular social media commentator, Bitcoin whales began booking profits as the price rose from $35,000 to nearly $38,000 on November 3rd. More than 15 wallets with over 1,000 BTC sold or redistributed their holdings. Data from on-chain analytics firm Glassnode showed that the number of whale wallets is now at its lowest level in approximately one month.
An order book from Binance BTC/USDT uploaded to X (formerly Twitter) by monitoring resource Material Indicators revealed bid support moving closer to the spot price, while whales continued to sell off. This suggests that there may be periods of downside within the broader Bitcoin uptrend, and investors should be prepared for such fluctuations.
Traders appeared to be caught off guard by the sudden BTC price reversal. Data from on-chain monitoring resource CoinGlass indicated the highest volume of daily long BTC liquidations in several months, totaling $120 million on November 14th. Short BTC liquidations, which accompanied Bitcoin’s spike to $38,000, were roughly equal in value. Additionally, nearly $300 million worth of cross-crypto longs were liquidated.
It’s important to note that this article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research before making any decisions.