Bitcoin hits 11-week low as crypto liquidations exceed $1 billion

CoinGlass recorded $1.05 billion in liquidations across tracked crypto markets during the preceding 24 hours. CoinGlass data showed that long positions accounted for $930.04 million, or 88.2%, of the liquidations. CoinGlass recorded another $124.69 million in liquidated short positions. Bitcoin reached $74,780.91 on Friday, the lowest intraday price since August 21, 77 days earlier. Bitcoin subsequently traded around $75,570.

CoinGlass data showed $267.20 million in Bitcoin liquidations, with long positions representing 88.9%. CoinGlass recorded $167.14 million in Ethereum liquidations, with long positions making up 81.1%. Long positions benefit from rising prices. Exchanges liquidate positions automatically when collateral becomes insufficient, potentially increasing selling pressure during a decline. Leveraged trading can exhaust all funds when an asset crosses a specified price threshold.

The Fear and Greed Index stood at 28 out of 100, approaching extreme fear. The index assigns maximum fear a value of 0 and maximum greed a value of 100. The index had indicated neutral sentiment just a week earlier, before the midterm elections.

The crypto retreat followed a sharp AI stock selloff and another round of forced derivatives position closures. The Nasdaq Composite dropped 5.52% on Thursday, the largest one-session decline in 19 months. The Philadelphia semiconductor index fell more than 12%. Nvidia shares declined over 9%. The S&P 500 dropped 4.36% on Thursday, removing roughly $3 trillion from the combined market value of constituent companies. Democratic victories in Tuesday's midterm elections prompted concerns that stricter AI regulation could delay data-center construction supporting this year's chip rally.

Bitcoin had already surrendered the post-election relief rally as chipmakers declined on Thursday. Forced closures of bullish crypto positions intensified Bitcoin's fall. However, simultaneous declines in equities and crypto do not necessarily establish that the equity selloff alone caused Bitcoin's retreat. A U.S. October jobs report that exceeded expectations also strengthened expectations for another Federal Reserve interest-rate increase in December. Higher borrowing costs can pressure speculative markets, leaving crypto vulnerable despite a partial recovery in chip stocks.

Bitcoin's weekly chart showed another declining candle and progressively lower highs since September, when Bitcoin briefly exceeded $87,000. The 50-day exponential moving average (EMA), which emphasizes recent prices, stood near $79,756. The 200-day EMA was around $76,497. The shorter average remaining above the longer average still indicates a bullish longer-term configuration. However, Bitcoin trading below both averages suggests that the recent decline has overtaken that lagging bullish signal.

The Relative Strength Index measured 37.7, below the neutral threshold of 50 but above the conventional oversold threshold of 30. The Average Directional Index measured 19.7, a reading typical of a market without an established trend. The negative directional indicator exceeded the positive indicator, suggesting weak bearish pressure.

The chart placed immediate support at $74,780, corresponding to a horizontal line and the intraday low. A daily close beneath that support would direct attention to the $73,000 to $72,500 region associated with August's breakout. Failure to hold that region would bring the psychological $70,000 level into focus. A recovery would first encounter the 200-day EMA around $76,497. Friday's daily candle remained unfinished, with the $74,780.91 low serving as the immediate price level to defend.