- Bitcoin plunged nearly 5% to $86,950 within three hours during the Sunday trading session.
- Liquidations reached $539 million as over 180,000 traders faced forced position closures.
The whole cryptocurrency market got shaken up pretty badly over the weekend trading sessions the top leading digital asset registered a steep downward price movement. In fact, the Bitcoin price went down quite heavily in a very short span of time of only three hours on Sunday, and therefore, it was a surprise for many investors.
The fall came after the recovery of the rate, which seemed to have stabilized at a higher level during the whole weekend. A chain reaction of liquidations on crypto exchanges triggered by this abrupt move has occurred; thus, thousands of traders have been affected all around the world.
The fall is the digital currency’s worst monthly performance in over six years, and it has made the market participants quite worried about subsequent price movements.
Massive Liquidations Follow Price Plunge
Bitcoin’s value dropped from around $91,500 to $86,950 on the major exchanges, which is nearly a 5% decrease in a very short time. The trading data showed that more than 180,000 cryptocurrency traders were liquidated in just one day, and the total amount of their positions that were forcibly closed reached around $539 million. Almost 90% of the liquidations were long positions, and most of them were concentrated in Bitcoin and Ethereum contracts on different trading platforms.
The Kobeissi Letter wrote that significant price changes in the cryptocurrency market are often seen on Friday and Sunday evenings; however, in this case, the fall did not have any obvious reasons. The crash was blamed on the selling pressure that was going down the chain and thus getting stronger at the same time that very high leverage positions were being forcefully closed due to the fall reaching new lows by the market.
November was a hard month for Bitcoin in particular, as the digital currency saw its value decrease by 17.49% over the month, which is its second-worst performance after the 36.57% drop in November 2018.
The bears dominated the price action, but some analysts still held optimistic views and saw the drop as a structural change rather than a fundamental one. A market analyst implied that the fall actually put the market in a better position, as the downward liquidity had been taken out and CME gaps were closed. The weekly chart reflected the first green candle after a series of four red candles and the price was $90,411 prior to Sunday’s drop.
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Source: https://thenewscrypto.com/bitcoin-suffers-worst-november-drop-since-2018-bear-market/
