Bitcoin was unable to break through key resistance over the weekend and slid nearly 5% in a three-hour drop on Sunday.
The asset had hovered around $91,500 for most of the weekend, appearing to consolidate heading into month-end, before abruptly falling to $86,950 on Coinbase, per TradingView data.
The sharp decline came right after Bitcoin logged its first green weekly close in four weeks, finishing the week at $90,411.
“The pattern has repeated countless times this year—Friday nights and Sunday nights often bring outsized crypto moves,” noted the Kobeissi Letter, which pointed out that the latest slump arrived without any clear news catalyst.
Kobeissi attributed the flash crash to “a sudden surge in selling pressure that triggered a domino-style sell-off—intensified by the massive amount of leveraged positions being liquidated.”
“This crypto ‘bear market’ is still structural in nature. We do NOT view this a fundamental decline.”
More than 180,000 traders were liquidated over the past 24 hours, with total liquidations reaching $539 million—most of which occurred in just the last few hours, according to CoinGlass. Nearly 90% of the wiped-out positions were longs, primarily in Bitcoin and Ether.
Worst November since 2018
Bitcoin just logged its weakest month of the year and its worst November since 2018, closing the month down 17.49%, CoinGlass data shows. For comparison, the asset plunged 36.57% in November 2018 during the depths of a severe bear market.
Still, analyst “Sykodelic” struck an optimistic tone, calling it “a great start to the month.” He noted that there was no typical Sunday pump, the CME gap has already been filled, and roughly $400 million in long positions have been cleared. “Downside liquidity was taken first, which is exactly what we want to see,” he added.
