Spot Traders Face Pressure Near $98K Barrier
Bitcoin spot traders have experienced setbacks as the price dipped below $100K on November 12, alongside substantial net outflows from US-based Bitcoin ETFs. The market reaction reflects bearish sentiment, highlighted by significant sell-offs, indicating potential further price suppression for Bitcoin and associated market volatility.
Bitcoin spot traders are witnessing increased pressure as the market hovers around the critical $98K mark. Short-term holders are reportedly realizing losses in a market characterized by reduced demand. US spot Bitcoin ETFs recorded net outflows following a break in $100K support, affecting market dynamics. The crypto market exhibits low liquidity and weak speculative interest, with BTC trading below its short-term holder cost basis.
Market Volatility Surges with $190 Million in Liquidations
The market faces heightened volatility, with significant long liquidations reaching $190 million. The cryptocurrency sector appears under pressure, particularly with short-term holders at a loss.
Rising yields and ETF net outflows potentially influence BTC prices, while broader market sentiments remain cautious. Historical patterns show BTC's tendency to rebound from similar price challenges in stressful environments.
Bitcoin's Historical Pattern of Rebounding After Dips
Bitcoin's movement below $100K echoes past events where rebounds occurred after failed resistance tests. Analysts observe linkages between market liquidity and previous spot trading reactions.
Insights from Glassnode suggest an ongoing bearish trend anchored by low liquidity and short-term losses, reflecting historical cycles. Expert analysis highlights crucial price levels as indicators of potential market shifts.
Short-term holders (STH) are key sellers realizing losses near $98K, with the STH realized profit-loss ratio below 0.21, indicating over 80% of realized value from loss sales.