Bitcoin Records Fourth Consecutive Negative Week as Corrective Phase Expands: Bitfinex Alpha

The BTC correction has extended the decline from all-time highs to 36%, making it the largest in this cycle both in terms of percentage and size of long liquidations.

Bitcoin (BTC) ended last week with a negative return amid the continued decline in the broader crypto market. Analysts at crypto exchange Bitfinex revealed in a weekly report that the record marked the fourth consecutive weekly decline for the leading digital asset.

According to Bitfinex, the last time BTC included Four consecutive weeks of negative returns occurred during the extended consolidation phase between March and October 2024. However, at that time the peak-to-trough decline was roughly 24.1%. This time, BTC is down 30.6% over the past four weeks.

BTC’s correction phase continues

Last week, BTC recorded a peak-to-trough decline of 16%, ending the seven-day period with an 8.65% decline. The correction extended the decline from an all-time high to 36%, underscoring the continued decline as the largest in this cycle, both in terms of percentage and size of long-term liquidations.

Amid the downturn, short-term holders (those holding BTC for 155 days or less) are capitulating. This investor cohort is seeing an acceleration in selling at a loss, with BTC falling below the lower band of their cost basis model. The seven-day exponential moving average of short-term realized losses rose to $523 million per day. This is the highest level since the collapse of the defunct crypto exchange FTX.

There is currently a lot of unrest among recent BTC buyers. They have been forced to abandon their positions amid mounting unrealized losses. This level of loss realization shows how top-heavy the market became before the ongoing correction – the BTC supply between $106,000 and $118,000 was much denser than during previous cycle peaks.

November ends on a negative note

The current downturn is so severe that the market has recorded unprecedented liquidation activity. The $19.2 billion liquidation event on October 10 is the largest single-day liquidation event in history. The market saw another $3.9 billion in liquidations last week, underscoring the pressure on leveraged traders in the derivatives sector.

Meanwhile, the market is on track to end November on a negative note. This month has historically delivered an average return of 40.8% and a median of over 8.2% since 2013. If the bears hold, November will follow October, which closed in the red for the first time in seven years.

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