Bitcoin’s decline follows substantial ETF withdrawals and heightened uncertainty after the Binance security breach. Forced long liquidations dominate the derivatives market, while reported op
Bitcoin fell below $76,000 on November 5 as another wave of forced liquidations swept through cryptocurrency markets, extending a selloff that has intensified following institutional fund withdrawals and exchange-security concerns.
The latest decline pushed Bitcoin through a closely watched Fibonacci retracement on the daily chart, while derivatives data revealed concentrated losses among leveraged bullish traders.
The broader market also weakened, with selling extending across major altcoins. Despite the forced closures, aggregate open interest remained elevated, suggesting that derivatives exposure had not been fully reduced.
The cryptocurrency market entered November under pressure following the October 29 Binance security incident.
Binance estimated the total impact at approximately $6.3 billion and reported that around $3 billion in affected assets had been frozen on-chain. The exchange attributed the breach to compromised operational infrastructure rather than evidence of leaked wallet private keys.
Although Binance pledged to cover affected user losses, the incident added uncertainty to an already fragile trading environment.
Institutional flows provided another source of pressure.
According to Farside Investors, U.S. spot Bitcoin ETFs recorded approximately $1.16 billion in combined net outflows across October 30, November 2 and November 3.
Those withdrawals reduced an important source of spot-market demand during a period when Bitcoin was struggling to sustain its recovery.
Subsequent modest ETF inflows indicated that institutional selling was not uninterrupted. Nevertheless, the earlier withdrawals contributed to weaker market conditions.
Neither the Binance incident nor ETF flows independently establish the immediate cause of November 5’s decline. Together, they help explain why buying interest has struggled to absorb selling pressure.
The latest decline was not confined to Bitcoin. Several large-cap cryptocurrencies recorded sharper percentage losses, indicating widespread risk reduction across digital assets.
The following CoinMarketCap snapshot captures prices and performance at the time of observation.
Digital Asset Market Monitor Major Cryptocurrency Prices November 5, 2026 | CoinMarketCap snapshot Asset Price 24h Bitcoin BTC $75,896.86 −5.67% Ethereum ETH $2,258.30 −6.86% BNB $692.35 −3.32% XRP $1.25 −5.02% Solana SOL $90.42 −6.40% TRON TRX $0.3160 −1.16% Zcash ZEC $1,236.15 −5.46% Hyperliquid HYPE $78.69 −7.96% Monero XMR $614.64 −3.88% Dogecoin DOGE $0.07223 −6.69% Source: CoinMarketCap. Prices reflect the observation period and are not live quotations.The broad decline suggests that investors were reducing exposure across multiple segments of the market.
Simultaneous losses can amplify collateral pressure in leveraged portfolios, particularly when traders hold correlated positions across several cryptocurrencies.
The cryptocurrency selloff intensified on November 5 as forced liquidations surpassed $1 billion, exposing the extent of bullish leverage accumulated before the latest decline.
CoinGlass data shows that nearly nine out of every ten dollars liquidated came from long positions. The imbalance suggests that traders betting on a recovery were particularly exposed when Bitcoin failed to sustain its rebound.
The pressure extended well beyond Bitcoin. Ethereum accounted for a substantial share of the forced closures, while Solana and several smaller derivatives markets also recorded significant losses.
Derivatives Stress Monitor Crypto Liquidation Breakdown CoinGlass | November 5, 2026 Total Liquidations | 24 Hours $1.03B 199,365 traders liquidated Longs $924.94M 89.4% Shorts $109.90M 10.6% Liquidations by Time Window 1 hour$503.23M 4 hours$870.84M 12 hours$898.26M Major Asset Liquidations Bitcoin$255.88M Ethereum$163.83M Solana$33.27M HYPE$19.30M Dogecoin$9.15M Largest Exchange Share Binance — 48.2% Largest Observed Order $10.94M Binance | ETHUSDT Source: CoinGlass. Time windows overlap and are not additive. Bars show each window’s proportion of the 24-hour total.The most revealing feature of the latest data is the concentration of forced closures within the shorter observation windows. This points to a rapid repricing of leveraged exposure rather than a gradual withdrawal from risk.
Ethereum’s prominent contribution also shows that the selloff was not simply a Bitcoin-specific event. Margin pressure spread across multiple markets, increasing the possibility of correlated position closures.
The largest observed liquidation occurred on Binance’s ETHUSDT market, underscoring the role of centralized derivatives venues in transmitting sudden price movements.
The distinction matters for the next trading sessions. A liquidation-driven decline can produce a temporary rebound once forced selling subsides, but that rebound becomes more vulnerable if fresh spot demand fails to materialize.
With aggregate open interest still elevated, another sharp move could expose remaining leveraged positions to renewed margin pressure.
Despite widespread liquidations, CoinMarketCap’s derivatives dashboard showed aggregate open interest at $400.39 billion, up 27.6%.
The increase suggests that outstanding derivatives exposure remained substantial even as leveraged positions were forcibly closed.
Rising open interest during falling prices can reflect new short positions, leveraged dip-buying or both.
The direction of newly established exposure cannot be determined from aggregate open interest alone. Funding rates and exchange-level positioning would be needed to distinguish between those scenarios.
The broader implication is that liquidations do not necessarily eliminate market leverage when new contracts are opened simultaneously.
This leaves cryptocurrency markets vulnerable to further volatility if prices continue moving rapidly through heavily traded areas.
Bitcoin’s updated daily chart shows a deterioration in technical structure, with the cryptocurrency falling below a key Fibonacci retracement while testing a descending trendline.
At the time of writing Bitcoin trades at $75,940.87 after declining 5.58% during the session.
Bitcoin reverses sharply lower, testing key support as bearish momentum intensifies. Chart: Alexander Zdravkov/TradingView.
The latest candle reversed an attempted recovery above $80,000, leaving buyers unable to sustain momentum near the upper portion of the recent trading range.
The rejection is significant because Bitcoin had already established a sequence of lower highs following its October peak.
A descending trendline drawn across recent price action intersects the latest trading area, reinforcing the importance of the current technical test.
Bitcoin has fallen beneath the 0.382 Fibonacci retracement at approximately $77,678, turning that level into immediate overhead resistance.
The next downside reference is the 0.50 retracement near $74,683. A sustained daily close below that area would expose the deeper 0.618 retracement around $71,689.
These are chart-derived reference levels, not verified concentrations of liquidation orders.
Momentum indicators continue to favor sellers.
The daily RSI declined to 38.57, remaining below its signal average of 40.97. Although the indicator is approaching oversold territory, it has not reached the conventional threshold of 30.
The MACD also remains bearish, with its main line at −1,262.26 below the signal line at −999.02. The histogram stood at −263.24, confirming that downside momentum remained established.
The combination of weakening momentum and repeated failed recoveries indicates that sellers continue to control the near-term trend.
The immediate bullish requirement is a recovery above the broken Fibonacci retracement, followed by a successful retest that establishes it as support.
Such a move would suggest that buyers are beginning to absorb selling pressure rather than merely producing a temporary rebound.
A stronger reversal would require Bitcoin to reclaim the higher resistance zone near $81,383 and establish a higher low.
Conversely, continued rejection beneath the broken retracement would leave the market vulnerable to another downward extension.
With derivatives liquidations already elevated, a breakdown through the next Fibonacci support could increase short-term volatility if additional leveraged positions come under pressure.
The chart therefore supports a bearish near-term outlook, with recovery confirmation dependent on Bitcoin reclaiming lost resistance rather than simply stabilizing after the latest decline.
The selloff reflects a market where weaker spot demand and derivatives positioning are reinforcing one another.
Institutional ETF withdrawals have reduced buying support, exchange-security concerns have complicated sentiment, and leveraged traders have faced significant forced closures.
A durable recovery would require evidence that spot demand is returning rather than prices merely rebounding after liquidation pressure subsides.
For derivatives markets, stabilizing liquidation activity alongside more balanced positioning would indicate that immediate stress is easing.
Until those conditions emerge, Bitcoin’s recovery attempts remain vulnerable to renewed selling, particularly while outstanding derivatives exposure remains elevated.
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