BTC/USD plunges below $70,000 as massive liquidations fuel further losses

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Bitcoin bears target $65,000 after sell-off

Leveraged positions face widespread liquidations

The immediate cause of the accelerated decline was a massive liquidation of long positions in the cryptocurrency derivatives market. According to CoinGlass, total liquidations over the past 24 hours reached approximately $1.47 billion, of which $1.31 billion came from long positions.

In total, more than 175,000 traders were affected by liquidations, with approximately $798 million in positions closed during just four hours of the most intense selling. After the break below $72,000, the market faced a shortage of buy orders, while the drop below $70,000 triggered another wave of forced liquidations of leveraged positions.

At the same time, total open interest in Bitcoin futures fell by approximately 6% to $47.9 billion, while derivatives trading volume more than doubled. This indicates a substantial reduction in speculative positions rather than simply gradual selling by long-term holders. Negative funding rates on perpetual contracts also point to a shift in sentiment in favor of sellers, although such a sharp decline increases the likelihood of a short-term rebound driven by short covering.

Fed expectations and dollar strength deepen the sell-off

Fundamental pressure intensified following the release of U.S. inflation data on November 10, which exceeded expectations and prompted market participants to reassess their forecasts for the Fed's December decision. The probability of a 25-basis-point rate hike is estimated at approximately 89%, while the remaining expectations point to a 50-basis-point increase.

U.S. Treasury yields continue to rise, while the U.S. Dollar Index (DXY) has climbed above 103, increasing the attractiveness of dollar-denominated assets. Another blow to market sentiment came from the unexpected resignation of Nvidia CEO Jensen Huang, which triggered a new wave of selling in technology stocks and reduced demand for risk assets.

Bitcoin proved particularly vulnerable due to the high concentration of speculative positions and insufficient liquidity near key support levels. Investors are also awaiting today's release of the U.S. Producer Price Index for October. Higher-than-expected inflation could reinforce expectations of tighter Fed monetary policy and trigger further cryptocurrency selling.

$70,000 becomes resistance as bears eye $65,000

Following the current rebound from today's low, the bulls may test the psychological $70,000 level, which, now acts as resistance. However, as stated in BTC/USD faces further losses as ETF outflows and Fed policy weigh on Bitcoin, recovery attempts may still attract selling interest. If the current support is broken, the bears' next target could be $65,000. A break above resistance would lead to a rise toward $71,000–72,000, where selling pressure may also emerge.

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