Bitcoin briefly reclaimed $83,000 on Friday after plunging to a month-to-date low of $80,308 on Thursday, pushing its market cap back to $1.66 trillion.
Key Takeaways
- Bitcoin briefly reclaimed $83,000 on Friday after plunging to a month-to-date low of $80,308 on Thursday.
- Over $700 million in spot bitcoin ETF outflows this week dampened expectations for a record-setting October.
- Bitunix analysts believe BTC must hold above $82,800 to reach $85,000 or risk dropping toward $77,000.
Resistance at $83,000 Triggers Volatile Trading
Bitcoin rebounded Friday to briefly reclaim $83,000, signaling a potential end to a downturn that dragged the cryptocurrency to multi-week lows. The decline, fueled by more than $700 million in spot bitcoin exchange-traded fund (ETF) outflows this week, dampened analyst expectations for a record-setting October.
Market data shows that immediately after plunging to a month-to-date low of $80,308 just after midday Thursday, the cryptocurrencys price reversed course, climbing all the way to $81,400 by 2:35 p.m. ET. The price then slowly rose to reach $82,500 by Friday morning before taking just 15 minutes to land just above $83,400 a few minutes before 8 a.m.
Since then, the price has seesawed around $83,000 resistance, as every sharp rally met an equally swift sell-off. By 1:30 p.m. ET, bitcoin hovered near $82,615, up 2.5% over 24 hours, pushing its market capitalization to nearly $1.66 trillion.
Derivatives activity shifted after Thursdays flash crash, marked by fewer long liquidations and a rise in short forced closures. Data from Coinglass shows long liquidations totaled about $70 million across the crypto market versus $270 million Thursday, while short liquidations reached $157 million. Total liquidations across the market fell to $228 million from $1.1 billion about 24 hours prior.
Institutional Outflows Signal Persistent Selling Pressure
After seeing sustained inflows from late September into October, spot bitcoin exchange-traded funds—which are seen as a gauge of institutional interest—have posted net outflows in three of the last four days.
According to analysts, the net outflows combined with declining open interest suggest that the brief recovery in spot demand was insufficient to absorb selling pressure. Bitunix analysts assert that bitcoin-specific liquidations over the last two days buttress this thesis.
“Bitcoin-specific liquidations reinforce that interpretation, with approximately $220.17 million in long positions liquidated against $45.71 million in shorts, a ratio of roughly 4.8 to 1. Across the broader crypto market, long liquidations reached $930.49 million, substantially exceeding the $162.06 million in short liquidations. The figures indicate that leveraged bullish positions bore the brunt of the latest decline,” Bitunix explained in a note.
Looking ahead, analysts assert that for bitcoin to make another test of $85,000 to $87,000, it first needs to reclaim $82,800, accompanied by a measured recovery in open interest and moderating ETF outflows. Should this fail, the cryptocurrency could see a drop below $77,000.
“Conversely, repeated rejection below $82,800 followed by a break beneath the recent low near $80,400 would shift attention toward the $79,700–$77,000 demand zone. If selling pressure intensifies further, the $70,500–$72,900 region represents a deeper area of potential demand,” the analysts concluded.
Bitcoin Price Drops Below $81K as Crypto Liquidations Top $1.1 Billion
Bitcoin broke below $81,000 to an intraday low near $80,500, wiping out billions from its market cap. Over $1.1 billion…
Bitcoin Price Drops Below $81K as Crypto Liquidations Top $1.1 Billion
Bitcoin broke below $81,000 to an intraday low near $80,500, wiping out billions from its market cap. Over $1.1 billion…
Bitcoin Price Drops Below $81K as Crypto Liquidations Top $1.1 Billion
Bitcoin broke below $81,000 to an intraday low near $80,500, wiping out billions from its market cap. Over $1.1 billion…