|
Getting your Trinity Audio player ready...
|
Bitcoin fell below $81,000 and dragged the wider crypto market through one of its roughest sessions in weeks. Around $1.1 billion in leveraged bets were wiped out in a single day, and newer holders rushed to the exits at a loss. The key question now is whether this was a flush-out or the start of something worse.
$1.1 Billion Wiped Out in 24 Hours
CoinGlass data showed $1.09 billion in crypto liquidations over the 24 hours to 10 am UTC on Friday. That is the biggest daily total since Aug. 21, though the pain landed on the opposite side of the trade. On Aug. 21, BTC rallied from $73,000 to $79,500 and squeezed shorts for $1.3 billion. This time, longs took the hit, with roughly $1.05 billion liquidated.
Bitcoin bottomed at $80,350 on Bitstamp, its lowest print since Sept. 18, before bouncing to around $82,500. The selling followed reports that the US government had moved more than 12,000 BTC it previously seized. Transfers like that don’t always mean a sale, but they tend to make traders nervous.
The $82,500 Level Traders Are Watching
That price zone matters. It has stayed important throughout Bitcoin’s uptrend since early July and marks the breakout point of an inverse head-and-shoulders pattern. Bitcoin needs to hold it as support to confirm the bullish reversal.
Analyst Rekt Capital said on X that Bitcoin is currently failing its retest of that level. If the weekly candle closes below it and the zone flips into resistance, he warned, BTC would likely slide back into its macro accumulation range. He has also pointed to similarities between this setup and Bitcoin’s 2023 recovery, which makes the coming weekly close a big deal for chart watchers.
Short-Term Holders Head for the Exit
On-chain data showed stress among newer investors. CryptoQuant contributor Amr Taha reported that short-term holders, meaning wallets that have held coins for up to six months, sent 55,600 BTC to exchanges at a loss on Thursday.
That figure topped the loss-driven transfers seen on June 26, when Bitcoin fell below $60,000 for a second straight day. The price gap is striking: BTC traded above $81,000 this time, versus about $59,300 in June, a difference of more than 36%.
Moving coins to an exchange isn’t the same as selling them, and Taha noted that users may not have sold their entire positions. Still, these transfers usually reflect an impulsive urge to cut losses before things get worse.
Also Read: Bitcoin Slips Below $84,000 as $550 Million in Longs Get Wiped Out
Capitulation or Warning Sign?
CryptoQuant’s report offered a hopeful reading. Aggressive loss-driven selling by short-term participants has historically lined up with short-term capitulation, which can exhaust weaker hands and set the stage for a recovery.
The bear case is just as simple. A weekly close under $82,500 would undermine the bullish pattern traders have been counting on since July. For now, Bitcoin is sitting right on the line, and the weekly close will likely decide which story plays out.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
