Bitcoin has tumbled below $69,000, reaching its lowest point in three months after a sharp sell-off over the past two days. The broader cryptocurrency market followed, resulting in a combined drop of over 9% in the total crypto market capitalization this week.
Market liquidations accelerate Bitcoin decline
In the past 24 hours, traders have faced widespread liquidations as Bitcoin’s rapid fall triggered over $1.31 billion in long positions being closed across the crypto market, according to data from Coinglass.
Coinglass recorded $1.31 billion in long position liquidations within a single day, highlighting the intensity of the current downturn across major digital assets.
The simultaneous correction in altcoins intensified the volatility, as investors reassessed their risk amid new market pressures. Bitcoin’s loss of momentum follows a period of relative stability earlier in the year, with prices now testing key technical levels previously considered strong support.
Bull market support band turns into resistance
Technical analysts pay close attention to Bitcoin’s bull market support band, which consists of the 20-week simple moving average and the 21-week exponential moving average. In bull phases, Bitcoin commonly trades above or bounces from this zone, but the recent decline has broken through this threshold.
Mini dictionary: Bull market support band – A technical indicator composed of the 20-week simple moving average and the 21-week exponential moving average, frequently used to identify support and resistance in prolonged uptrends.
BTC last interacted with this band as support in early November but later fell decisively below it. With the support band currently between $73,570 and $76,530, analysts are now observing this range as potential resistance if Bitcoin attempts a rebound.
| Support Band Level | Price Range |
|---|---|
| Bull market support band | $73,570 to $76,530 |
| 200-week simple moving average | ~$67,990 |
ETF outflows intensify selling pressure
Outflows from Bitcoin exchange-traded funds have accelerated throughout the month, adding further downward pressure. According to SoSoValue, net Bitcoin ETF outflows have reached $1.88 billion so far in the month, impacting seven of the past eight trading sessions. In the last five sessions alone, $1.44 billion exited these funds, including $299.9 million in a single session. Total net assets in U.S. spot Bitcoin ETFs decreased from $102.26 billion on Nov. 4 to $93.70 billion.
ETF redemptions surpassed $1.44 billion over five days, pushing total assets down by nearly $9 billion in just over one week.
AI sector volatility spills into crypto
November 5 marked the month’s largest single-day outflow from Bitcoin ETFs, coinciding with a 5.52% drop in the Nasdaq and a notable decline in major tech stocks like Nvidia, which lost 9%. The growing link between Bitcoin and AI-related equities stems from Bitcoin miners redirecting resources towards artificial intelligence infrastructure.
Mini dictionary: Nvidia – A leading U.S. technology company known for its graphics processing units (GPUs) and key player in the development of AI hardware and applications.
Nvidia added to the sector’s losses when its board announced the resignation of CEO Jensen Huang, an event that further contributed to uncertainty among tech and digital asset investors.
Inflation sparks rate hike concerns
Market sentiment was further rattled by U.S. inflation figures. Core CPI rose 0.3%, surpassing expectations of 0.2%. This prompted Federal Reserve Governor Christopher Waller to mention a possible 0.5 percentage point rate hike, sending Treasury yields above 5% and fueling a risk-off environment in non-yielding assets like Bitcoin.
Key long-term support faces test
Bitcoin is now trading just above its 200-week simple moving average at approximately $67,990. This level has played an important role in previous Bitcoin cycles, marking cycle lows in 2015, 2018-19, and 2020, and providing a bounce earlier in the year. However, history shows that losing this support can expose Bitcoin to deeper corrections, as happened for several months in 2022.
With less than four weeks until the key Federal Reserve meeting, analysts are watching whether Bitcoin can maintain a weekly close above this long-term reference or if a further drop is imminent.
