Price pressure on Bitcoin causes sellers to wipe out existing two-year macro lows, but expectations for a relief “pump” are rising. When the price of bitcoin tickers unexpectedly dropped to two-year lows of $17,673 on November 8, investors quickly liquidated positions worth a total of $200 million.
Data from TradingView indicated widespread destruction throughout cryptocurrency price charts, but FTX maintained a gloomy disposition. After initially climbing back up to over $20,000 on the report that troubled cryptocurrency exchange FTX would be acquired by rival cryptocurrency exchange Binance, panic set in once again after the opening of Wall Street.
Bitstamp had a sudden drop that hit a low of $17,120 for the Bitcoin to US Dollar exchange rate, which resulted in a loss of $2,000 in less than two hours. Since the last time the pair traded at that level was in late November 2020, this indicates that Bitcoin was able to surpass the previous macro-lows of $17,600, which were achieved in June of this year.
According to information obtained from Binance’s order book, the abrupt downward avalanche pierced the sturdy purchase support located around $18,000. Near the daily close on November 8th, a zone of interest for trading volume was located around $18,400. This zone is still in play as of the time this article is being written, which is over 12 hours later.
Figures obtained from the on-chain monitoring platform Coinglass documented substantial suffering endured by long-term investors who sold their positions at an inappropriate moment. The value of BTC long positions that were liquidated across exchanges on November 8 was a total of $214 million, while the value of cross-crypto long positions was $670 million.
When shorts are included, the total liquidations for the day amounted to $915 million. The United States Consumer Price Index (CPI) inflation data for October was supposed to be released on November 10, which was already going to be a day with a lot of market volatility.
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