Bitcoin price dips 3% as liquidity hunt follows $4.6B MicroStrategy buy

As a seasoned researcher with over a decade of experience in the cryptocurrency market, I have witnessed countless ups and downs, bubbles, and crashes. The current situation with Bitcoin (BTC) is reminiscent of a roller coaster ride that I’ve been on for years.


At the opening of Wall Street on November 18, Bitcoin (BTC) reversed its early-week profits as there was a search for liquidity among those who had bought late into the market.

BTC price reacts as MicroStrategy announces giant purchase

According to data from both CryptoMoon Markets Pro and TradingView, Bitcoin’s value decreased by approximately 3%, causing the BTC/USD exchange rate to fall short of the weekly closing point.

That weekly close had marked Bitcoin’s highest ever, but news that business intelligence firm MicroStrategy had purchased $4.6 billion of BTC over the past week appeared to sour the mood.

Typically, when Saylor announces a purchase, there’s often a brief surge in price due to the large amount of buying that is being explained,” said Daan Crypto Trades in a post on X. (Paraphrased)

On November 13th, Bitcoin (BTC) reached unprecedented peaks around $93,500. However, volatility followed, causing the price to dip to approximately $87,000 during the day.

“Nothing changed with $BTC,” popular trader and commentator Josh Rager argued on the day.

“Bitcoin is just ranging and is very healthy after a 40% move up in just over week. In the meantime, let altcoins/memecoins fly and find price discovery. Current market win-win for entire crypto industry.”

Some people speculated about a more significant drop in Bitcoin prices, with potential “buy-the-dip” levels reaching as high as $70,000.

According to trader, analyst, and entrepreneur Michaël van de Poppe, Bitcoin drops may still represent good buying opportunities for his X followers.

“I think we’ll see a substantial dip across markets in the coming 1-2 weeks, but for now, enjoy the upward ride.”

Opportunists suffer in Bitcoin support retest

Bitcoin, following its drop below $9,000, started absorbing a substantial amount of funds (liquidity). This was observed by well-known trader Skew, who pointed out an escalating trend in taking short positions.

Many traders have recently opened short positions at this price level, and there are still over 2,000 Bitcoin worth of shorts being pursued. Additionally, some slight selling from long position holders has also occurred during this movement,” he affirmed.

24-hour Bitcoin long liquidations, as reported by data from CoinGlass, were approximately $35 million when this information was gathered.

Typically, these walls are taken away, but on this occasion, they were bought instead and primarily filled up,” Skew added.

“Funny if it was not intentional but let’s see if this price area gets defended now.”

Daan Crypto Trades pointed out that the price of Bitcoin had closed a gap in the CME Group’s Bitcoin futures market with its recent movement.

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2024-11-18 17:38