Bitcoin fell sharply on Sunday after failing to clear a major ceiling near $91,000, falling nearly 6% in a matter of hours and touching $85,800 on Coingecko. The sell-off came after the market posted a positive weekly close — its first after a losing streak of four weeks — which briefly looked like a turning point before quickly moving lower.
Liquidations and traders’ losses
Based on CoinGlass data, more than 180,000 traders were wiped out in the past 24 hours, bringing the total liquidation to nearly $540 million. Nearly 90% of this value came from long bets, which were concentrated in Bitcoin and Ether.
Reports revealed that the sudden spike in selling volume triggered a chain reaction, with forced exits compounding price declines as margin positions were closed.
Some market commentators pointed out technical quirks as well. The Chicago Mercantile Exchange gap watched by traders has been filled, and analysts said nearly $400 million in long positions have already been taken, adding that downside liquidity was cleared first – a move they described as a beneficial market clean-up.
Liquidity problem in cryptocurrencies:
As we have seen countless times this year, Friday night and Sunday night often bring big moves in cryptocurrencies.
We have now seen Bitcoin drop by $4,000 in a matter of minutes without any news at all.
Why? Liquidity is weak.
Then add this to the fact that… https://t.co/BTRNPV8Y5a
– Al Qubaisi Letter (@KobeissiLetter) December 1, 2025
Al Qubaisi’s letter noted that the decline arrived for no apparent reason in the news, and said the pattern had been repeated several times this year, especially late in the Friday and Sunday trading windows.
Macro and volatility signals
The broader backdrop also weighed on sentiment. Investors are watching potential shifts in Federal Reserve policy, and the prospect of higher interest rates tends to put pressure on risk assets like Bitcoin.
The token’s intraday range showed a low of $85,400 and a high of $90,600, highlighting how quickly prices could swing. The Average True Range (ATR) is at 4,423, a sign of high daily volatility, while the Relative Strength Index (RSI) is just over 38, moving towards oversold readings.
November proved difficult. Reports show that Bitcoin ended the month down 18%, the worst November since 2018, when prices fell 35% in the same month.
However, assets are up 10% year to date, giving some traders confidence that the recent weakness is more mechanical than fundamental.
Image: ICO Bench
Market sounds and what they say
According to CoinGlass and analysts cited online, the majority of recent liquidations have been long positions — a factor that has amplified the decline.
Kobeissi said that this episode was structural, and related to the dismantling of crowded situations, and he explicitly stated that they do not view it as a fundamental retreat. Some analysts remained optimistic, calling the move a positive reset for the month. On social media platforms, there is an active debate about whether this tremor paves the way for a new accumulation.
Binance CEO Richard Teng urged diversification during the markets, a reminder that echoed across trading desks. Policymakers remain the key macro variable: a hawkish Fed tone could increase selling pressures, while a more dovish stance could stabilize prices.
Traders will be watching liquidity levels, open interest, and whether significant long pressures subside, as these factors are likely to dictate the near-term trend.
Featured image from Pexels, chart from TradingView
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