A snowball effect knocks BTC price through key support levels after today’s 6% drop sends Bitcoin to its lowest levels since mid October.
Bitcoin (BTC) fell through key support levels on Nov. 18 in a fresh test of bulls’ resolve.
“Strong market-wide selling” hits
Data from CoinMarkets Pro and TradingView showed BTC/USD abandoning the $58,400 support after multiple retests in previous days and at the time of writing, Bitcoin is trading at $57,800.
Despite high volatility and challenging the $60,000 mark, within the past hour the price fell as low as $57,200 — its lowest since Oct. 15.
“Strong market-wide selling is going on,” trader and analyst Rekt Capital wrote in his latest Twitter update.
“Undoubtedly, seller exhaustion lies ahead. Watch for high sell-side volume bars in the short-term. These tend to signal bottoming out after constant selling and precede either a strong bounce or an entire trend reversal.”
Exhausted sellers characterized the atmosphere in mid September, just after the day when Bitcoin shed $10,000 in a single daily candle.
Similar to then, Nov. 18’s move caused a conspicuous reversal in Bitcoin’s Spent Output Profit Ratio (SOPR), a key metric in determining oversold price periods.
Illiquid supply highlights strong hands’ resolve
At the time of writing, however, Bitcoin was still in the process of finding a monthly price bottom.
For Michaël van de Poppe, $56,000 was the cut-off point for a rebound.
“If that’s the case, a relief rally might be around the corner,” he forecast.
A more optimistic Willy Woo eyed long-term investor buying as a sign that an overall bearish trend was far from reality.
I think I’ll call this one “buying the dip” pic.twitter.com/57kmAtycGF
— Willy Woo (@woonomic) November 18, 2021
Bitcoin’s illiquid supply copied the mood, rising significantly as prices fell in a sign of strong buyer interest throughout this week.