On November 14th, the Bitcoin market witnessed one of its largest long-liquidation events since June 2021. As shown in the chart, over $1 billion in leveraged long positions were forcibly closed — a volume nearly matching the liquidation cascade seen on October 10th.
This massive event coincided with the breakdown of the crucial psychological and technical support level around the $101k mark. The loss of this support triggered a domino effect of selling, leading to the forced closure of positions from traders who were anticipating a continued uptrend.
As a result of this intense and sudden selling pressure, Bitcoin’s price plunged sharply to the ~$94k region before ultimately finding footing above a lower support and accumulation zone, around $96k.
This leverage flush-out highlights the price’s vulnerability to excessive optimism. Now, price consolidation and a successful defense of this new support area will be crucial to prevent further decline and to determine the market’s short-term direction.
Written by CryptoOnchain
