Bitcoin did not break through key resistance over the weekend, plunging nearly 5% in only three hours on Sunday.
According to Tradingview, the asset traded around $91,500 for a lot of the weekend, where it seemed to be consolidating towards the top of the month, but suddenly fell back to $86,950 on Coinbase.
The nearly 5% decline followed the primary green weekly candle close in 4 weeks, with Bitcoin (BTC) ending the week at $90,411, in accordance with Tradingview.
“As has been seen countless times this yr, Friday evenings and Sunday evenings often coincide with large crypto moves,” the Kobeissi letter noted, adding that the plunge occurred without an obvious news trigger.
BTC slaughtered $4,500 on Sunday. Source: TradingView
Further leverage was liquidated
Kobeissi blamed the flash crash on a “sudden increase in sales volume, which led to a domino effect sell-off that is barely reinforced by the historical amounts of leveraged positions liquidated.”
“This crypto 'bear market' remains to be structural in nature. We do NOT view this as a fundamental decline.”
Over 180,000 traders were liquidated within the last 24 hours, with total liquidations reaching $539 million, nearly all of them in the previous couple of hours, CoinGlass reported. Almost 90% of those liquidations were long positions, predominantly in BTC and Ether (ETH).
The worst November since 2018
According to CoinGlass, Bitcoin experienced its worst month this yr and its worst November performance since 2018, ending the month down 17.49%. The asset fell 36.57% in November 2018 during a brutal bear market.
Analyst “Sykodelic” remained optimistic and stated: “This is definitely an amazing begin to the month.”
There was no Sunday pump, the CME gap had already closed and $400 million in long positions had already been taken, he said. “Downside liquidity was lost first, and that’s exactly what we would like to attain.”
