Bitcoin price falls 4%, can BTC recover above $70,000? - Crypto News
Bitcoin price has fallen 4.1% over the past 24 hours to $69,376 on November 13, extending its weekly losses to 8.5% as heavy liquidations, continued ETF withdrawals and concerns over another Federal Reserve interest rate hike have weighed on the cryptocurrency market.
The cryptocurrency briefly slipped below $69,000 earlier in the session before recovering some losses, although it remained below the $70,000 level that had previously supported prices. Bitcoin has now reached its lowest levels since August, with its latest decline taking place amid a broader market downturn affecting risk assets.
Roughly $1.47 billion in leveraged crypto positions were liquidated over 24 hours, with long positions accounting for $1.31 billion. These forced liquidations occurred as traders who had borrowed funds to bet on rising prices were compelled to close their positions, creating additional selling pressure that pushed prices lower.
ETF Outflows Continue
US spot Bitcoin exchange-traded funds recorded approximately $1.44 billion in net outflows across five consecutive trading sessions through November 11. On November 11 alone, the funds lost $299.8 million, including $269.7 million from BlackRock's iShares Bitcoin Trust. These withdrawals followed an earlier period of selling that saw ETF outflows reach $2.22 billion across eight trading sessions beginning October 30.
Macroeconomic Pressure
Hotter US inflation has raised expectations of another Federal Reserve interest rate hike, adding pressure on Bitcoin and other risk assets. US consumer prices rose 0.4% in October, exceeding economists' expectations of 0.3%, which prompted traders to raise their expectations for a December rate increase to approximately 90% according to CME FedWatch data.
The US Dollar Index subsequently moved above 103, while Treasury yields rose as investors prepared for the possibility of tighter monetary policy. Selling across technology stocks following Nvidia's leadership turmoil has contributed to weaker investor sentiment, while MSCI's reported decision to remove Strategy from its indexes at the end of November has added uncertainty around corporate Bitcoin exposure.
Liquidity Concerns
The cryptocurrency market has been dealing with declining liquidity even before Friday's selloff. Glassnode identified a $14.2 billion contraction in stablecoin supply over 30 days, the fastest decline since June 2022. Meanwhile, trading infrastructure provider Talos reported thinner spot market order books, leaving fewer buy orders available to absorb large sell transactions.
Bitcoin is testing support at its 200-week simple moving average (SMA), a level many market participants treat as the dividing line between a long-term bull and bear market and that currently sits around $67,800. Buyers will look to establish a floor here. Fewer active traders track the 200-week SMA today, but it remains an important gauge for trend-following participants.
CryptoQuant had previously warned that Bitcoin's correction had not produced the same reduction in leverage seen during earlier market declines. The firm's analysis found that exchange inflows had reached nine-month highs, while Bitcoin miner reserves had fallen to approximately 1.19 million BTC.
Technical Levels
Bitcoin's 24-hour chart shows that selling accelerated after the cryptocurrency lost $71,000, with prices subsequently falling into the $68,000 to $69,000 range. Buyers managed to push BTC back above $69,000 during the afternoon session, although the recovery stalled before reaching $70,000.
The immediate resistance lies around $70,000, followed by $71,000 and $72,000, where Bitcoin traded before the latest round of selling. On the downside, the $68,000 to $68,500 area remains an important support zone following Friday's intraday decline.
A weekly close above roughly $68,000 keeps the long-term trend bullish by that measure, according to Bitfinex Alpha analysts. The market will be watching whether Bitcoin can recover above $70,000 in the coming days as traders assess the impact of macroeconomic factors and institutional demand.
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