Bitcoin failed to break key resistance over the weekend and fell nearly 5% in just three hours on Sunday.
The asset had spent most of the weekend trading around $91,500, where it appeared to be consolidating towards the end of the month, but suddenly fell to $86,950 on Coinbase, according to Tradingview.
The nearly 5% drop followed the first weekly green candle close in four weeks, with Bitcoin (BTC) ending the week at $90,411, according to Tradingview.
“As seen countless times this year, Friday nights and Sunday nights often come with big crypto moves,” Carta Kobeissi noted, adding that the drop occurred without an obvious news catalyst.
More leverage has been liquidated
Kobeissi attributed the sudden drop to a “sudden surge in selling volume, which caused a domino effect liquidation, which is only amplified by the historic amounts of leveraged positions being liquidated.”
“This cryptocurrency ‘bear market’ remains structural in nature. We do NOT consider this a fundamental decline.”
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More than 180,000 traders were liquidated in the last 24 hours, with total liquidations of $539 million and the majority of them in the last few hours, CoinGlass reported. Nearly 90% of those liquidations were long positions, predominantly in BTC and Ether (ETH).
The worst November since 2018
Bitcoin experienced its worst month this year and its worst November performance since 2018, ending the month down 17.49%, according to CoinGlass. The asset fell 36.57% in November 2018, during a brutal bear market.
Analyst “Sykodelic” remained optimistic, stating: “This is actually a great start to the month.”
There was no pumping on Sunday, the CME gap has already closed and $400 million in long positions have already been taken, he said. “The downside liquidity was lost first, which is what we want to happen.”
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