Bitcoin Plummets 5% in 'Sunday Slam' Amid Surge in Liquidations

Bitcoin encountered significant challenges over the weekend, as it failed to surpass a crucial resistance level, leading to a sharp 5% decline within just three hours on Sunday.

Key Takeaways

Market Movements: Bitcoin dropped nearly 5% on Sunday, falling from $91,500 to $86,950.
Liquidations Surge: Over 180,000 traders experienced liquidations totaling $539 million, predominantly among long positions.
November Performance: Bitcoin faced its worst November since 2018, down 17.49%.
Expert Opinions: Some analysts remain optimistic about future market recovery despite the downturn.

Bitcoin had been trading around $91,500 over the weekend, appearing to consolidate as the month ended. However, it abruptly fell to $86,950 on Coinbase, as reported by TradingView. This nearly 5% downturn occurred after Bitcoin recorded its first positive weekly candle close in four weeks, finishing the week at $90,411.

The Kobeissi Letter pointed out that significant price shifts often happen on Friday and Sunday nights, noting that this latest drop occurred without any clear news trigger.

BTC dumps $4,500 in Sunday slaughter. Source: TradingView

Bitcoin crashes 5% in ‘Sunday slam’ as liquidations surge

Increased Liquidations Among Traders

Kobeissi attributed the rapid decline to a sudden surge in selling activity, causing a ripple effect of sell-offs. This situation was exacerbated by the record levels of leveraged positions being liquidated.

According to CoinGlass, more than 180,000 traders faced liquidations in the last 24 hours, with total liquidations amounting to $539 million. Most of these were long positions, particularly in Bitcoin and Ether, accounting for nearly 90% of the liquidations.

November’s Disappointing Performance

November proved to be a challenging month for Bitcoin, marking its poorest monthly performance in 2023, with a decline of 17.49%. This is reminiscent of November 2018 when Bitcoin plummeted by 36.57% during an intense bear market.

Despite the recent downturn, analyst “Sykodelic” expressed a bullish outlook, stating that this situation may actually signal a positive start for the upcoming month. He noted that there was no last-minute surge on Sunday, the CME gap was already filled, and considerable long positions were already cleared. He added, “Downside liquidity was addressed first, which is precisely what we wanted to see.”

In conclusion, Bitcoin's market behavior this past weekend showcased volatility, as it experienced a significant dip after struggling to maintain upward momentum. The wave of liquidations also points to the risks associated with leveraging in the cryptocurrency space. As November closes, traders and analysts alike are looking towards potential recovery signs in the weeks ahead.