- Bitcoin around $90K trades in an $88K liquidation cluster with up to $829M in long positions at risk
- Bitcoin derivatives contracts across major exchanges are down about 30% from this year’s peak as fear climbs
- Realized losses hit $860M on November 17, marking a second panic wave even as some traders eye value zones
Bitcoin dropped below $90,000 in the early hours of Tuesday, November 18, amid extreme fear, according to data from the Fear and Greed Index, leaving investors worried, with many users considering it a buying opportunity.
Why BTC Is Trapped in a High-Liquidation Zone
Meanwhile, at the current price, the cryptocurrency trades within a crucial region where significant movements in the upward or downward direction could cause massive liquidation.
According to data from Coinglass, the cumulative long liquidation intensity of mainstream CEXs would reach $829 million if Bitcoin falls below $88,000. On the contrary, a return above $91,000 would trigger a short liquidation of up to $702 million across mainstream CEXs.
In the meantime, there are increasing negative reports surrounding Bitcoin, as more bearish pressure mounts on the pioneer cryptocurrency. On-chain data reveals a 30% drop in Bitcoin futures contracts across all exchanges from this year’s peak. Analysts consider this an indication of decreasing liquidity and speculative activity, which substantiates the Bitcoin market’s extreme fear condition and the significant withdrawal of active traders from the system.
Related News: Bitcoin Falls Under $90K: A Crash, Correction or Discounted Buy Zone?
Panic Continues to Spread for Bitcoin
According to a Bitcoin analyst observing Glassnode’s data, the second wave of panic selling was squeezed out on November 17, with the realized loss after entity adjustment (EARL) reaching $860 million, surpassing the $820 million scale of November 14. The development signifies a continued spread of market panic, with no signs of convergence.
The analyst noted that the current market situation demands caution from traders, considering the potential of market sentiment to be contagious despite the presence of investors and institutions that recognize the current pattern. However, the crypto analyst emphasized that the Bitcoin market will only initiate a rebound after it is determined that there is no more room for a potential EARL decline.
In the meantime, TradingView’s data reveals that Bitcoin traded at $90,831 at the time of writing, having rebounded slightly from the crash in the early hours of Tuesday’s trading session amid significant bearish pressure.
Related News: Saylor Buys $835.6M Bitcoin Dip as Political Risk Sinks Price to $90K
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Source: https://coinedition.com/whats-happening-with-bitcoin-price-today/
