"Bitcoin Plunges in 26th, Just a Simple Rebalancing" Experts Say

BTC Futures Market Liquidation Recorded $550 million
McMillin "Simple Rebalancing Before Retesting $100,000"
Nick Foster "The Drop on Nov. 26, Part Of Bullish Pattern"

While Bitcoin plunged due to the liquidation of large-scale long bets on Nov. 26, many experts expressed their opinion that the plunge that occurred on Nov. 26 was just an rebalancing.

Bitcoin, which had been on a high note recently, plunged 4.8% to $93,000 on Nov. 26. It fell by about $4,800 dollars a day alone.

The reason for the sharp drop in Bitcoin is the large-scale liquidation that occurred in the futures market.

According to data released by a specialist cryptocurrency investment manager Merkel Tree Capital, about $550 million was liquidated in the bitcoin futures market on the morning of Nov. 26. About 70% of the liquidation is in long positions, with large-scale liquidation of funds from futures investors who bet on further Bitcoin rise.

Experts say that Bitcoin's plunge on Nov. 26 is a healthy drop.

Ryan McMillin, general director of investment in Merkel Tree Capital, pointed out that the figure of $100,000, which everyone is paying attention to, acted as a psychological barrier, causing a massive sell-off. McMillin explained, "When Bitcoin soared frighteningly after Trump's election as U.S. president, there was a number of $100,000 left in all investors' minds, and this number of $100,000 caused a large-scale long position and a large-scale sell wall."

"There isn't much liquidity below $92,000, so that looks like the floor for this move," McMillin said. "We expect the market to go and retest $100,000 before the week is out."

Nick Foster, founder of DeFi derivatives protocol Dlive, also explained, "The adjustment that occurred on Nov. 26 is not unusual in the bull market. Bitcoin's rise, which began to rise due to expectations from the U.S. interest rate cut cycle and regulatory framework, is not expected to turn off easily."

권승원 기자 ksw@blockstreet.co.kr