Bitcoin price falls 4%, can BTC recover above $70,000?

This article was updated with a quote from Bitfinex Alpha.

Bitcoin price has fallen 4.1% over the past 24 hours to $69,376 on November 13, as heavy liquidations, continued ETF withdrawals and concerns over another Federal Reserve interest rate hike have weighed on the cryptocurrency market.

Summary

• Bitcoin price fell 4.1% to $69,376 on November 13, extending its weekly losses to 8.5% as selling pressure continued.
• Roughly $1.47 billion in leveraged crypto positions were liquidated over 24 hours, with long positions accounting for $1.31 billion.
• US spot Bitcoin ETFs recorded approximately $1.44 billion in net outflows across five consecutive trading sessions through November 11.
• Hotter US inflation has raised expectations of another Federal Reserve rate hike, adding pressure on Bitcoin and other risk assets.
• Bitcoin recovered above $69,000 after its latest decline, but $70,000 remains the immediate resistance level traders are watching.

According to crypto.news data, Bitcoin (BTC) 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.

The cryptocurrency has lost 8.5% over the past seven days and 15.9% over the past month, with its latest decline taking it to its lowest levels since August.

Why is Bitcoin price falling today?

Bitcoin’s latest selloff has been driven by several developments, including heavy liquidations in the derivatives market and weakening institutional demand.

According to CoinGlass figures cited in market reports, roughly $1.47 billion in leveraged cryptocurrency positions were liquidated over 24 hours, with long positions accounting for approximately $1.31 billion.

Traders who had borrowed funds to bet on rising prices were forced to close their positions as Bitcoin dropped, creating additional selling pressure that pushed prices lower.

The decline followed a break below $72,000 on November 12, when Bitcoin lost several important technical levels and traders began watching $70,000 as the next potential support.

Institutional demand has remained weak throughout the week.

US spot Bitcoin exchange-traded funds recorded approximately $1.44 billion in net outflows across five consecutive trading sessions through November 11, according to SoSoValue figures.

On November 11 alone, the funds lost $299.8 million, including $269.7 million from BlackRock’s iShares Bitcoin Trust.

The withdrawals followed an earlier period of selling that saw ETF outflows reach $2.22 billion across eight trading sessions beginning October 30.

Macroeconomic conditions have added to the pressure.

US consumer prices rose 0.4% in October, exceeding economists’ expectations of 0.3%, which prompted traders to raise their expectations for another Federal Reserve interest rate hike in December.

According to CME FedWatch data cited by CoinDesk on November 11, the probability of a December rate increase had climbed to approximately 90%.

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.

Weak liquidity has made the Bitcoin selloff worse

The cryptocurrency market has been dealing with declining liquidity even before Friday’s selloff.

As crypto.news previously reported, 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.

The combination has made Bitcoin more vulnerable to sudden price movements, particularly when leveraged positions begin closing automatically.

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.

Can Bitcoin price recover above $70,000?

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.

“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,” analysts at Bitfinex Alpha told crypto.news.

“A weekly close above roughly $68,000 keeps the long-term trend bullish by that measure,” they added.