Why Is Bitcoin Falling? Sharp Sell-Off Pushes BTC Below $70,000

Following the inflation report, investors quickly adjusted their monetary policy expectations. According to a Reuters assessment, futures markets began pricing in a stronger possibility of an interest rate increase in December. Higher interest rates can encourage investors to shift their capital toward safer assets that generate interest income. Meanwhile, reduced risk appetite can intensify selling pressure on assets such as Bitcoin, which do not provide direct interest income. Rising US Treasury yields and a stronger dollar are also among the factors making a recovery in the cryptocurrency market more difficult.

The macroeconomic pressure was compounded by declining technology stocks and regulatory uncertainty in the United States. Developments in the technology sector have had a particularly noticeable impact on risk assets. A November 12 report by CoinDesk highlighted how management uncertainty surrounding Nvidia contributed to selling pressure in technology stocks, while Bitcoin was also affected by weakening market conditions. Therefore, rather than attributing the latest decline to a single development, it is necessary to evaluate it alongside deteriorating investor risk appetite and tightening liquidity conditions.

Bitcoin ETF Outflows and Liquidations Deepen the Decline

Another significant factor weighing on Bitcoin's price is the continued capital outflow from US spot Bitcoin ETFs. According to data published by Farside Investors, these funds recorded five consecutive trading days of net outflows between November 5 and November 11, with approximately $1.44 billion withdrawn during that period. Net outflows reached $299.8 million on November 11 alone. BlackRock's IBIT fund recorded $269.7 million in withdrawals that day, while its nine consecutive trading days of net outflows highlighted weakening institutional demand.

Although ETF outflows do not fully explain all the selling activity in the market, limited demand from new buyers is adding to the downward pressure. Institutional investors reducing their exposure makes it more difficult for Bitcointo establish a strong demand base during periods of declining prices. Meanwhile, the widespread use of high leverage in futures trading represents another mechanism that can accelerate price declines.

According to the latest liquidation report based on CoinGlass data, leveraged positions worth $680.81 million were liquidated across the cryptocurrency market during the 24 hours leading up to the morning of November 13. Approximately $599 million of those liquidations involved long positions, which are opened in anticipation of rising prices. Bitcoin-related liquidations reached $325.28 million. During the same period, 112,947 traders had their positions liquidated, while the largest single liquidation involved a $31.09 million Bitcoin position on the Hyperliquid platform.

The concentration of liquidations in long positions is particularly noteworthy. As Bitcoin's price declines, highly leveraged traders may be forced to close their positions. These forced closures can generate additional selling orders, accelerating the downward movement. As a result, what initially appears to be a limited price correction can develop into a much broader sell-off, amplified by leveraged trading activity.

Which Bitcoin Support Levels Should Investors Watch?

Bitcoin's technical outlook has weakened following its decline below $70,000. In particular, trading below the 200-day simple moving average, currently located near $73,150, is considered a negative signal for the medium-term trend. A technical assessment published by FXStreet indicated that losing this moving average could leave Bitcoin vulnerable to further selling pressure toward the $65,000–$67,000 support region.

Under current market conditions, $70,000 stands out as a psychologically important threshold. If Bitcoin remains consistently below this level, the response from buyers around $69,000 will become increasingly important. Should selling pressure continue, approximately $67,300 could serve as the next technical support level. A November 13 price analysis also noted that the bearish trend was strengthening, with sellers focusing on support near $67,292.

In a bullish scenario, Bitcoin would first need to reclaim $70,000 before recovering the $72,000–$73,150 range. In particular, sustained trading above the 200-day moving average could provide one of the first indications that the downward trend is losing momentum. However, while oversold conditions in technical indicators may create opportunities for short-term relief rallies, they do not necessarily signal the beginning of a sustainable recovery.

Bitcoin's next major price movement could also be influenced by the US Producer Price Index (PPI) data scheduled for release on November 13. According to the BLS official economic release calendar, October PPI figures are scheduled to be published at 8:30 a.m. Eastern Time (4:30 p.m. Türkiye time). Higher-than-expected figures could reinforce concerns that the Fed will maintain a tighter monetary policy stance, while softer inflation data could provide temporary relief for financial markets.

For Bitcoin to achieve a sustainable recovery, however, a technical rebound from key support levels may not be enough. A slowdown in ETF outflows, stronger buying demand, and a reduction in leverage-driven selling pressure will likely be necessary to establish a more convincing recovery trend.