Bitcoin Experiences Its Largest November Decline Since the 2018 Bear Market

Bitcoin has faced its steepest decline in November since the downturn of 2018. This decline came after a weekend where the price had stabilized at a relatively high level. A sudden price movement triggered a chain reaction of liquidations across crypto exchanges, impacting thousands of traders globally. With November marking the digital currency's worst monthly performance in over six years, market participants express significant concerns regarding future price movements.

Key Takeaways:

Bitcoin experienced its largest drop in November since the bear market of 2018.
A rapid price fall led to over 180,000 liquidations worth approximately $539 million.
The decline raised concerns among market participants, with a 17.49% drop in Bitcoin's value in November.
Some analysts view the drop as a structural change beneficial for the market's future direction.

Bitcoin Suffers Worst November Drop Since 2018 Bear Market

Liquidation Wave Follows Sharp Price Drop

Bitcoin’s price sharply declined from approximately $91,500 to $86,950, resulting in nearly a 5% drop in a very brief period. Data indicates that more than 180,000 cryptocurrency traders were liquidated within a single day, leading to forced closures of positions totaling around $539 million. Notably, nearly 90% of these liquidations were long positions, predominantly in Bitcoin and Ethereum contracts on various trading platforms.

The Kobeissi Letter highlighted that considerable price fluctuations in the cryptocurrency space often occur on Friday and Sunday nights; however, this particular decline appeared to lack a clear catalyst. The crash was attributed to ongoing selling pressure exacerbated by the forced closure of high-leverage positions, resulting in the market reaching new lows.

November proved to be a challenging month for Bitcoin, with a decrease of 17.49%, marking its second-most significant decline following the 36.57% plunge experienced in November 2018. Although the bears dominated the market, some analysts maintained optimistic outlooks, viewing the decline as a structural adjustment rather than a fundamental issue. A market analyst suggested that the price drop may ultimately put the market in a stronger position, as it removed downward liquidity and closed CME gaps. Notably, the weekly chart displayed the first green candle following four consecutive red candles, with the price recorded at $90,411 before the drop that occurred on Sunday.