Bitcoin Faces Massive Liquidation Cluster Near $60K, Glassnode Warns - Bitcoin News

Bitcoin’s price dropped to $63,602 as of 5:51 p.m. EST on Nov. 14, a decline of 6.90% over 24 hours. The drop brings the cryptocurrency closer to a critical zone where a large number of leveraged trades are at risk of being forcibly closed.

The warning comes from Glassnode, a firm that analyzes public blockchain data and crypto markets. The firm has identified a liquidation cluster between $59,500 and $62,600, a zone that has remained untouched since the August low.

This cluster of long positions was created during the August breakout. The concentration of bullish trades in this zone represents a spot of fragility that could accelerate a final capitulation flush, a burst of selling as traders abandon their bets under pressure.

Forced Closures and Shrinking Liquidity

Leverage allows traders to control exposure larger than the funds they commit, with collateral serving as backing for their trades. When losses leave too little margin to meet an exchange’s minimum requirement, the platform can trigger liquidations of bullish futures positions.

These closures can add selling pressure, particularly when many trades reach their thresholds together. Broader strains in crypto liquidity and derivatives positioning included approximately $1.64 billion in liquidations during a 24-hour period surrounding the Nov. 13 decline, with nearly 90% involving bullish trades.

Liquidity describes the market’s ability to absorb transactions without large price changes, while derivatives positioning measures exposure through contracts tied to underlying assets. By Nov. 14, Glassnode also reported that stablecoin supply had contracted by $17 billion over a month, reducing the capital available within crypto markets.

U.S. spot bitcoin exchange-traded funds recorded $185.4 million in net outflows on Nov. 13, including $143.5 million from Blackrock and $41.9 million from Fidelity. Withdrawals totaled approximately $1.07 billion during Nov. 9-13, with every session ending negative.

Nov. 13 marked the seventh consecutive trading day of net outflows, extending the streak that began Nov. 5. This sustained capital outflow from institutional investors adds to the downward pressure on the price.

Selective Accumulation Offers a Counterpoint

Earlier liquidation rounds had already cleared many long positions built up during the decline from September, Glassnode noted on Nov. 11. That reduced the concentration of vulnerable trades near the price prevailing when the analysis was published.

The deeper August cluster remained, creating a distinction between leverage already removed and exposure still vulnerable below the market. Despite the decline, Glassnode’s Nov. 11 assessment of weakening demand and selective accumulation showed renewed buying among wallets holding 100 to 1,000 BTC and 1,000 to 10,000 BTC.

These cohorts group wallet addresses by balance, and accumulation describes increases in their holdings. Smaller holders and the largest cohort continued reducing balances, leaving buying concentrated among selected groups.

Meanwhile, expectations of higher U.S. interest rates added to the financial backdrop. CME Fedwatch, which estimates Federal Reserve decision probabilities from futures prices, assigned an 88.5% probability to a quarter-point increase and 11.5% to a half-point move on Nov. 14.

The Fed’s policy meeting was scheduled for Dec. 8-9. The anticipation of a rate hike creates a challenging environment for risk assets like Bitcoin.