Bitcoin Gives Back Early-Week Gains as Liquidity Hunt Targets Late Longs

At the Nov. 18 Wall Street open, Bitcoin (BTC) experienced a price drop, reversing its early-week gains. This move was in line with expectations, as market participants had anticipated a liquidity hunt targeting late long positions.

BTC/USD Price Reacts to MicroStrategy’s Giant Purchase

Data from Cointelegraph Markets Pro and TradingView revealed a 3% BTC price drop, causing the price of BTC/USD to fall below its weekly close. This weekly close marked a new all-time high for Bitcoin, with the price reaching $93,500 on Nov. 13.

However, news of business intelligence firm MicroStrategy’s massive purchase of $4.6 billion worth of BTC over the past week seemed to sour the mood. The announcement was met with skepticism by some market participants, who noted that such large purchases often lead to short-term price drops.

Trader Sentiment: Bitcoin Ranging in a Healthy Market

Popular trader Daan Crypto Trades took to social media platform X to share his thoughts on the situation. "Usually we get a short term dump on Saylor’s buy announcements as it explains a lot of the buying that was done," he wrote.

Josh Rager, another popular trader and commentator, also chimed in with his analysis. "Nothing changed with BTC," he argued. "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."

Total Crypto Market Cap: A Deeper Price Retracement on the Horizon?

The total crypto market cap, which had been rising steadily throughout the year, saw a slight dip following the news of MicroStrategy’s purchase. This led some analysts to speculate about a deeper price retracement in the near future.

Michaël van de Poppe, trader, analyst, and entrepreneur, shared his thoughts on the matter with X followers. "Bitcoin dips are still ready to be bought," he said. "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 as Bitcoin Takes a Wall of Liquidity

As BTC price dropped below $90,000, popular trader Skew noted an increase in short positioning. "A lot of shorts just opened here into price & still chasing ~ 2K + BTC in shorts," he confirmed.

Data from CoinGlass revealed that 24-hour BTC-long liquidations had reached around $35 million at the time of writing. This indicated a significant shift in market sentiment, with long positions being liquidated as the price dropped.

Bitcoin Fills Latest ‘Gap’ on CME Group’s Bitcoin Futures Market

Daan Crypto Trades added that Bitcoin had filled its latest "gap" on CME Group’s Bitcoin futures market. This development could be seen as a sign of the market adjusting to the new price levels, but its implications are still unclear.

Conclusion: Every Investment and Trading Move Involves Risk

As with any investment or trading move, it’s essential to remember that every decision involves risk. Readers should conduct their own research and analysis before making an investment decision.

Market Outlook: Critical Insights to Spot Investment Opportunities, Mitigate Risks, and Refine Your Trading Strategies

To stay ahead of the market, explore our Markets Outlook newsletter, which provides critical insights to help you spot investment opportunities, mitigate risks, and refine your trading strategies. Delivered every Monday, our newsletter is a must-read for any serious investor or trader.

Subscribe Now and Stay Ahead of the Market

By subscribing to our newsletter, you’ll gain access to:

  • Critical market analysis and insights
  • Investment opportunity spotting and risk mitigation techniques
  • Trading strategy refinement and optimization tools
  • Weekly updates on market trends and news

Don’t miss out on the latest market developments. Subscribe now and stay ahead of the game.

About This Article

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Explore More Articles Like This

For more in-depth analysis and insights on the cryptocurrency market, explore our articles section. From market trends to investing strategies, we’ve got you covered.

Subscribe to the Markets Outlook Newsletter

Stay ahead of the market with our critical insights, delivered every Monday. Subscribe now and refine your trading strategies, spot investment opportunities, and mitigate risks.

By subscribing, you agree to our Terms of Services and Privacy Policy.