BTC/USD Sees 3% Drop as Liquidity Hunt Takes Aim at Late Longs
The Bitcoin price, which had been experiencing a rally in the past few days, took a hit on November 18th as a liquidity hunt targeted late long positions. According to data from Cointelegraph Markets Pro and TradingView, BTC/USD dropped by around 3%, falling below its weekly close of $93,500.
MicroStrategy’s Billion-Dollar Bitcoin Purchase Unfolds
The news that MicroStrategy, a business intelligence firm, had acquired over $4.6 billion worth of Bitcoin in the past week seemed to sour the mood, leading to a price drop. As trader Daan Crypto Trades pointed out on X, "Usually we get a short-term dump on Saylor’s buy announcements as it explains a lot of the buying that was done."
BTC/USD Hits New All-Time Highs Before Volatility Sets In
The BTC/USD pair had hit new all-time highs near $93,500 on November 13th, but volatility soon set in, with intraday lows focusing on the area just below $87,000. Trader Josh Rager argued that "Nothing changed with BTC" and that the market was still in a healthy state after a 40% move up in just over a week.
Josh Rager’s Perspective: A Healthy Bitcoin Market
- Range-Bound Market: Rager believes that the current market is range-bound, allowing both Bitcoin and altcoins to find their price discovery.
- Win-Win Situation for Crypto Industry: He also emphasized that the current market is a win-win situation for the entire crypto industry.
Altcoins and Memecoins Experience Price Discovery
As the market becomes more volatile, other cryptocurrencies like altcoins and memecoins are experiencing price discovery. This can be seen in the total crypto market cap 1-day chart from TradingView.
Others Predict a Deeper BTC Price Retracement
Some traders and analysts have entertained the idea of a deeper BTC price retracement, with "buy the dip" targets already extending towards $70,000. Michaël van de Poppe, a trader, analyst, and entrepreneur, told his X followers that "Bitcoin dips are still ready to be bought."
Michaël van de Poppe’s Prediction: A Substantial Dip Ahead
- Buy the Dip Opportunity: Van de Poppe believes that there will be a substantial dip across markets in the coming 1-2 weeks.
- Upward Ride for Now: However, he advises traders to enjoy the upward ride while it lasts.
Opportunists Suffer as Bitcoin Supports Its Price
Bitcoin began taking a wall of liquidity with its move below $90,000. Popular trader Skew noted increasing short positioning now entering, with around 2,000 BTC in shorts.
Skew’s Analysis: Shorts Get Sold Into and Filled
- Increasing Short Positioning: Skew observed that a lot of shorts opened into price and are still chasing.
- Minor Long Capitulation: He also confirmed some minor long capitulation on that move.
Bitcoin Liquidations Reach $35 Million
According to data from CoinGlass, 24-hour BTC-long liquidations reached around $35 million at the time of writing. This can be seen in the screenshot of BTC liquidations.
CoinGlass’s Data: $35 Million in BTC-Long Liquidations
- Liquidation Volume: The chart shows a significant increase in liquidation volume.
- Bitcoin Price Movement: The data correlates with the Bitcoin price movement, indicating that the price drop led to increased liquidations.