Originally published on: November 25, 2024
Bitcoin’s push towards $100,000 hit a stumbling block as sellers seized control, causing the price of BTC to drop below $93,000. Margin traders holding long positions faced significant losses as liquidations in the crypto market soared to $337.6 million within 24 hours.
The sell-off driven by liquidations is evident in the volume-by-side data on major centralized exchanges, showing heavy selling on platforms offering perpetual futures trading.
Additionally, Glassnode identified Bitcoin’s long-term holders (LTHs) as contributing to the selling pressure. The 6-month to 12-month LTH cohort, with an average cost basis 71% lower than the market price (~$57.9K), has been actively selling, leading to the highest monthly selling pressure since April 2024.
As market dynamics shifted towards short positions with increasing liquidations and Bitcoin’s price approaching $90,000, the funding rate for BTC climbed significantly. This shift indicates a change in sentiment from spot and leveraged long to short positions.
Data from liquidation maps now suggest that a further drop in Bitcoin’s price below $94,000 could trigger additional forced selling, potentially pushing the price towards $90,000. Some traders have already expressed a willingness to buy at this level.
Stay updated on Bitcoin and market insights by subscribing to our Markets Outlook newsletter. Receive critical information to identify investment opportunities, manage risks, and refine trading strategies every Monday.
Please note that this article does not provide investment advice. Readers are encouraged to conduct their own research before making any financial decisions.
