A $727 million liquidation wave has exposed the market's fragility, with Bitcoin facing a critical $68,000 support test and deeper historical downside risks.

Bitcoin and Ethereum fell to three-month lows Thursday, deepening a cryptocurrency selloff that has erased $550 billion in market value since October.

Bitcoin slumped to $71,317, its lowest level since August, while Ethereum briefly fell below $2,000 to touch $1,983. The declines have pushed the broader crypto market's valuation from approximately $2.94 trillion in early October to $2.39 trillion.

The downturn has coincided with a sharp deterioration in market sentiment. CryptoQuant's Analyst Consensus Index fell from -1.0 to -1.8 standard deviations over seven days, signaling increasingly bearish expectations as investors grapple with persistent selling pressure and uncertainty over the market's next direction.

The latest price decline triggered widespread losses across cryptocurrency derivatives markets as leveraged traders were caught on the wrong side of the downturn.

According to CoinGlass, 125,731 traders were liquidated over 24 hours, with closed positions totaling about $727 million.

Bitcoin accounted for $293.8 million of those liquidations, with bullish positions representing 91.1% of the total. Ethereum followed with $120.2 million, of which 87.7% came from traders betting on higher prices.

Together, Bitcoin and Ethereum accounted for approximately $414 million, or 57% of the market-wide total.

Bitcoin and Ethereum accounted for about $414 million of the roughly $727 million market total, according to a rolling 24-hour CoinGlass snapshot on Nov. 12.

The selling intensified during a four-hour period when nearly $489 million in leveraged positions were liquidated.

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