Bitcoin liquidated $200 million of long positions on Nov. 8 as BTC price briefly tumbled to two-year lows.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
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BTC price sets new two-year low
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Data from Cointelegraph Markets Pro and TradingView revealed carnage across crypto price charts as exchange FTX kept the mood low.
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After initially rebounding over $20,000 on news that the embattled FTX might be bought out by competitor Binance, panic returned after the Wall Street open.
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BTC/USD lost $2,000 in under two hours, seeing a sudden plunge that set a low of $17,120 on Bitstamp.
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The last time the pair traded at that level was in late November 2020, meaning Bitcoin managed to beat the previous macro lows of $17,600 set in June this year.
BTC/USD 1-week candle chart (Bitstamp). Source: TradingView
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Data from the Binance order book showed the sudden cascade downward puncturing solid buy support at $18,000.
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At the Nov. 8 daily close, an area of interest for trade volume was around $18,400 — a zone still in play at the time of writing nearly 12 hours later.
BTC/USD order book chart (Binance). Source: Material Indicators/ Twitter
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Figures from on-chain monitoring resource Coinglass, meanwhile, tracked major pain for long investors caught out at the wrong time.
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BTC long liquidations across exchanges totaled $214 million for Nov. 8, while cross-crypto longs were liquidated to the tune of $670 million.
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Combined with shorts, total liquidations for the day were $915 million.
Crypto liquidations chart. Source: Coinglass
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"Important weeks ahead"
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Analyzing the situation, popular crypto commentators were cautious about calling an end to price turmoil.
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“Way too soon to know how this resolves, but the fact we are seeing another exchange-driven liquidity crisis at this point in the macro structure is really quite something,” a normally optimistic TechDev tweeted: “Important weeks ahead.”
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Others acknowledged that they themselves had fallen foul of volatility, while beyond crypto, the analysis looked for potential silver linings.
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For trading account IncomeSharks, weakness in the United States dollar over the ongoing midterm elections was a promising sign for risk assets.
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“Looks ready to drop below support,” it wrote about the U.S. dollar index (DXY) on the day: “Stocks looking good. 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 put up a little rally. Once again the issue is not with the assets themselves.”
U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView
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Nov. 10 was already due to be a volatile day for the week, with U.S. Consumer Price Index (CPI) inflation data due for the month of October.
