Bitcoin falls to a 1-month low after a 6% dive drops BTC price to $56.6K

Bitcoin News

Bitcoin (BTC) fell through key support levels on Nov. 18 in a fresh test of bulls’ resolve.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

“Strong market-wide selling” hits

Data from Cointelegraph Markets 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.

Bitcoin SOPR chart. Source: Glassnode

Related: Bitcoin holders who bought at $20K refuse to sell BTC at all-time highs — Latest data

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 Cointelegraph contributor 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.

Bitcoin’s illiquid supply copied the mood, rising significantly as prices fell in a sign of strong buyer interest throughout this week.

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