Bitcoin below $72,000: 656 million liquidations in 24 hours

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The fall was rapid, and bullish bettors paid a high price for it. WatcherGuru relayed $125 million in longs liquidated in twenty minutes, while bitcoin fell below $72,000.

A long position is a bet on the upside, amplified by leverage. When the losses exceed the stake, the exchange automatically closes the position: this is liquidation.

For example, a leverage of 10 multiplies both gains and losses, to the point that a 10% drop in the price wipes out the entire stake. The forced sale that follows pushes the price lower, and the cascade feeds itself.

On the counter, Coinglass recorded $656 million in liquidations, figures reported by Bitcoin.com News.

Long positions represent 555 million, compared to just over 100 million for shorts, who are betting on the decline.

Bitcoin tops the bill with $237 million in liquidations, far ahead of ether and Solana.

The worst happened in a few minutes, around 2 p.m. 226.5 million dollars then disappeared, the vast majority on bullish bets.

Binance alone accounts for 37% of liquidation activity.

The biggest liquidation of the day was a $31 million long bitcoin position on Hyperliquid.

On Bitstamp, bitcoin was trading at around $71,888 after the shock, at the end of a week of hourly candles at ever lower peaks and troughs. The decline accelerated on rising volumes, a sign of forced sales rather than an orderly retreat.

On the trigger side, nothing is decided, but withdrawals from American bitcoin ETFs weigh heavily, with 1.44 billion dollars withdrawn in five days.

US inflation in October, judged to be more solid than expected, fuels bets on a tightening by the Fed, while the weakness of technology stocks is also cited.

Nvidia is providing its shake-up, while its boss Jensen Huang has reportedly announced his departure three days after being targeted by an investigation. Technology stocks were already dragging bitcoin down on Tuesday, November 11.

Pressure also comes from within, with Strategy leaving the MSCI indices on November 30. The supply of stablecoins is contracting, and American buying appetite is weakening, according to Coinbase premium indicators.

Technically, resuming the zone of 75,600 to 75,700 dollars would give some air to the chart. There is no guarantee that buyers will return.

On Monday, November 9, more than a billion dollars in liquidations had already swept the market. Only four days later, the same mechanics started again. The question is whether the forced sellers have finished selling, or whether they reveal the absence of buyers.

An editorial article. Le Journal du Coin, the first French-speaking news media on cryptocurrency, Bitcoin, and blockchain protocols.

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Machine-translated from French