Bitcoin Price Falls Below $17.6K In June As FTX Nerves Liquidate Nearly $1B
Bitcoin (BTC) liquidated $200 million in long positions on November 8 as the BTC price briefly fell to a two-year low.
BTC price sets new two-year low
Data from Cointelegraph Markets Pro and TradingView revealed carnage across crypto price charts as exchange FTX kept sentiment low.
After initially bouncing back over $20,000 on news that the embattled FTX may be bought out by rival Binance, panic returned after Wall Street opened.
BTC/USD lost $2,000 in under two hours, and saw a sudden drop that set a low of $17,120 on Bitstamp.
The last time the pair traded at that level was in late November 2020, meaning Bitcoin managed to break the previous macro lows of $17,600 set in June this year.
Data from the Binance order book, the sudden cascade down showed puncturing solid buy support at $18,000.
At the daily close on November 8, an area of interest for trading volume was around $18,400 – a zone that remains in play at the time of writing almost 12 hours later.
Figures from the chain monitoring resource Coinglass meanwhile tracked great pain for long investors caught out at the wrong time.
BTC long liquidations across exchanges totaled $214 million for November 8, while cross-crypto longs were liquidated to the tune of $670 million.
Combined with shorts, total liquidations for the day were $915 million.
“Important weeks ahead”
Analyzing the situation, popular crypto commentators were cautious about ending the price turmoil.
Related: Why Is Bitcoin Price Down Today?
“Way too early to know how this will play out, but the fact that we’re seeing another stock market-driven liquidity crisis at this point in the macro structure is really something,” a normally optimistic TechDev tweeted.
“Important weeks ahead.”
Second recognized that they themselves had fallen for volatility, while beyond crypto, analysis looked for potential silver linings.
For trading account IncomeSharks, weakness in the US dollar during the ongoing midterm elections was a promising sign for risk assets.
“Looks ready to fall below support,” it wrote on the US dollar index (DXY) on the day.
“Stocks look good. A nasty Black Swan event ruined the price action for Crypto, but once that taste is out of people’s mouths, we should see $BTC and $ETH rise a bit. Once again, the problem is not with the assets themselves.”
November 10 was already set to be a volatile day for the week, with US Consumer Price Index (CPI) inflation data for the month of October.
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