Bitcoin Struggles to Maintain Support
As Bitcoin (BTC) tested the $35,000 support into the Nov. 14 daily close, sell-side pressure caused multiday lows, leading to a $1,000 drop in an hour. However, the largest cryptocurrency found support at the $35,000 mark and rebounded to around $35,600 at publication.
Volatility Amid Positive News
The volatility came hours after United States inflation slowed beyond expectations, which initially seemed like a positive news event for Bitcoin and crypto. However, analysts observed little appetite for buying BTC at prior levels around 18-month highs among larger investors.
Whale Wallets and Long Liquidations
Bitcoin whales started booking profits as the price rose from $35,000 to nearly $38,000. More than 15 wallets with over 1,000 BTC sold or redistributed their holdings. On-chain analytics firm Glassnode reported that the cohort of whale wallets is now at its lowest number in around one month.
Data from on-chain monitoring resource CoinGlass showed the highest volume of daily long BTC liquidations in several months totaling $120 million for Nov. 14.
Market Reactions and Bid Support
Market reactions following the inflation data reiterated the need to expect periods of downside within a broader Bitcoin uptrend. The bid support moved closer to spot price, ranging from $33,000 to $34,500 while whales sold off.
Long Liquidations Hit Highest in Months
The data revealed that traders were caught unaware by the BTC price reversal. Cross-crypto longs were liquidated to nearly $300 million alongside roughly equal short BTC liquidations.
Hot Take: Uncertain Future for Bitcoin
Despite positive news on U.S. inflation slowing down, Bitcoin’s market saw significant sell-offs from larger investors and high long liquidation volumes. This raises questions about the sustainability of an uptrend and suggests that volatility may continue as Bitcoin struggles to maintain key support levels.
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