Bitcoin Price Crash Not Over Yet, Says CryptoQuant

• Bitcoin ETFs saw a $151M outflow amid a 20% price drop and a $1T market loss.
• Whales and retail investors sold, leaving Bitcoin without support during the crash.
• A rebound to $87K sparks hopes of a temporary bottom, though the market remains fragile.

Bitcoin ETFs recorded a net outflow of $151 million on November 24, according to data from SoSoValue, with Fidelity’s FBTC being the only fund to show minimal inflows. This comes amid a sharp 20% drop in Bitcoin’s value in November, which shocked the crypto market. After hitting a high of over $125,000 in October, Bitcoin’s price plummeted to $81,000 before slightly recovering to $87,359.

The sudden decline devastated more than $1 trillion of market value. According to CryptoQuant, this was not simply panic selling. Whales’ behavior, retail pressure, and massive futures liquidations were the primary causes. In the weeks before the crash, wallets holding between 1,000 and 10,000 BTC started offloading their positions, taking profits based on Bitcoin’s highs in October.

Source: X

Whale Pressure Overpowered Retail Activity

Retail investors did not rush in to buy the dip. Even small wallets with less than 10 BTC were selling. This left Bitcoin with no support as both big and small investors took profits. With insufficient buying power to offset the selling, Bitcoin’s price kept on dropping.

Mid-sized holders, with 10-100 BTC and 100-1000 BTC, had some buying activity. Their purchases slowed the decline in Bitcoin, but it was not enough. Whale selling beat their efforts. The absence of support from stronger players kept the market under pressure.

Source: X

The actual impact came from the futures market. In 13 days, long positions were dumped on a massive scale. This forced selling caused BTC to go from $106,000 to $81,000, shifting a correction to a steady crash. The liquidation of long positions started a chain reaction that aggravated the decline of the market.

Also Read: Bitcoin Whale Growth Signals Price Recovery Despite Selloff

Cryptocurrency did show some signs of recovery after hitting $81,000. Within two days, the price had risen back to $87,000. This gave some hope that there may have been a temporary bottom in the market. However, analysts warn that the resurgence is fragile. A true reversal will depend on whether the large holders, those with 1,000-10,000 BTC, stop selling and start buying again.

Bitcoin Looks for Stability After Its Third-Worst November

Crypto analyst Jason Pizzono highlighted that Bitcoin’s 20% decline in November made it the third-worst for the past five years. Only two months in 2021 were worse, following major market surges. This recent decline has been a cause of concern throughout the crypto sector, but some analysts view it as a possible indication of a bottom forming.

Source: X

While the outlook is unclear, most analysts think that BTC may have come across a temporary bottom. If BTC can continue its rebound, it could continue rising until the end of the month. The next few weeks will determine whether this recovery will be lasting or if more volatility is coming.

Also Read: Bitcoin ETF Outflows Hit $2.8 Billion as Long Liquidations Spike to FTX-Era Levels