Bitcoin failed to break key resistance over the weekend and slumped almost 5% in just three hours on Sunday.
The asset had spent most of the weekend trading around $91,500, where it appeared to be consolidating toward the end of the month, but suddenly declined to $86,950 on Coinbase, according to Tradingview.
The almost 5% slide followed the first green weekly candle close for four weeks, with Bitcoin (BTC) ending the week at $90,411, according to Tradingview.
“As seen countless times this year, Friday night and Sunday night often come with large crypto moves,” observed the Kobeissi Letter, adding the slump came without an obvious news catalyst.
More leverage has been liquidated
Kobeissi blamed the flash crash on a “sudden rush of selling volume, which led to a domino-effect sell-off, which is only amplified by the historic amounts of levered positions being liquidated.”
“This crypto ‘bear market’ is still structural in nature. We do NOT view this a fundamental decline.”
Related: Bitcoin 2022 bear market correlation hits 98% as ETFs add $220M
Over 180,000 traders were liquidated in the past 24 hours, with total liquidations at $539 million and the majority of that in the past few hours, reported CoinGlass. Almost 90% of those liquidations were long positions, predominantly in BTC and Ether (ETH).
Worst November since 2018
Bitcoin saw its worst month of this year and its worst November performance since 2018, ending the month down 17.49%, according to CoinGlass. The asset declined 36.57% in November 2018, during a brutal bear market.
Analyst “Sykodelic” remained bullish, stating, “This is actually a great start to the month.”
There was no Sunday pump, the CME gap already closed, and $400 million in longs have been taken already, he said. “Downside liquidity swiped first, which is what we want to happen.”
Magazine: Animoca’s bet on altcoin upside, analyst eyes $100K Bitcoin: Hodler’s Digest