Bitcoin (BTC) liquidated $200 million in long positions on November 8 as the price of BTC briefly fell to its lowest level in two years.
BTC Price Sets New Two-Year Low
Data from Cointelegraph Markets Pro and TradingView revealed carnage in crypto price charts as the FTX exchange kept the mood low.
After initially bouncing over $20,000 on news that beleaguered FTX could be taken over by rival Binance, the panic returned after Wall Street opened.
BTC/USD lost $2,000 in less than two hours, seeing a sudden drop that hit a low of $17,120 on Bitstamp.
The last time the pair traded at this level was in late November 2020, which means Bitcoin managed to beat previous macro lows of $17,600 set in June this year.
Binance Order Book Data show the sudden cascade downside puncturing strong buy support at $18,000.
As of the daily close on November 8, an area of interest for trading volume was around $18,400 – an area still in play at the time of writing almost 12 hours later.
Figures from on-chain monitoring resource Coinglass, meanwhile, tracked the major pain of long investors caught at the wrong time.
Long BTC liquidations on exchanges totaled $214 million for Nov. 8, while long crypto trades liquidated to the tune of $670 million.
Combined with shorts, total liquidations for the day were $915 million.
“Important weeks ahead”
Analyzing the situation, popular crypto commentators were cautious about the end of the price turmoil.
Related: Why is the price of Bitcoin falling today?
“Way too soon to know how this is resolving, but the fact that we are seeing another trade-induced liquidity crunch at this point in the macro structure is really something,” the normally optimistic TechDev said. tweeted:
“Important weeks ahead.”
Others recognized that they themselves had fallen prey to volatility, while beyond crypto, analysis looked for potential silver linings.
For the IncomeSharks trading account, the weakness of the US dollar during the ongoing midterm elections was a promising sign for risk assets.
“Looks ready to fall below support”, he wrote about today’s US dollar index (DXY):
“Stocks are looking good. A nasty black swan event has ruined price action for Crypto, but once that taste is out of people’s mouths, we should see $BTC and $ETH stage a small rally. Again once, the problem is not with the assets themselves.
November 10 was already supposed to be a volatile day for the week, with US Consumer Price Index (CPI) inflation data due for October.
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