Bitcoin hits 6-week lows in hours as 24-hour crypto liquidations near $650M
Bitcoin price action sees its lowest levels since the second week of October after a hefty $5,000 red daily candle.
Bitcoin (BTC) shed almost $5,000 in a single day on Nov. 26 as bulls faced fresh disappointment.
Bitcoin targets $54,000
Holders saw major selling pressure after coming within inches of $60,000 late Thursday, the latest attempt to beat resistance nonetheless ending in retreat.
Hours later, Bitcoin was back at its lowest since mid-October, and firmly vindicating those who assumed that the current break from bullish upside was not yet over.
“Not quite there but hopefully soon,” analyst Willy Woo said about one indicator hinting at an incoming — but not immediate — return to form.
Anyone too enthusiastically betting on corrective moves being over was feeling the pain Friday, however, as 24-hour cross-crypto liquidations passed $630 million.
Yet not everyone was surprised or even fazed by the events. Cointelegraph contributor Michaël van de Poppe called current price action “beautiful.”
Beautiful price action #Bitcoin. I like it.
— Michaël van de Poppe (@CryptoMichNL) November 26, 2021
“Many pumps on markets are getting retraced fully,” he added in Twitter comments ahead of a fresh market update.
U.S. dollar reverses rally
Altcoins did not respond well to Bitcoin’s fall, with many major tokens outperforming BTC against the United States dollar in terms of losses.
Ether (ETH) shed 5.8% compared to Bitcoin’s 4.8%, with others seeing closer to 10% erased from spot price on the day.
Van de Poppe advised traders not to “chase the pump” on altcoins, as markets showed that repeating volatility remains a key characteristic in the short term.
In the background, the U.S. dollar finally began to flag, ending a winning streak that had seen the U.S. dollar currency index (DXY) hit its highest since June 2020.
While traditionally inversely correlated, Bitcoin looked like more of a copycat as DXY targeted 96 for support.