Bitcoin Holds Above $83K, Ether Recovers to $2,455 Amid $195M Short Squeeze

Bitcoin Surges Past $83,000, Ethereum Recovers Above $2,400 Amidst Short Squeeze

Bitcoin climbed to $83,004 in early trading today, marking a 1.51% increase over the past 24 hours. The cryptocurrency has regained its footing above the $83,000 mark after dipping to $81,322 yesterday, with intraday highs reaching $83,439.

Ethereum also showed strength, trading at $2,455 with a 2.39% gain and reaching an intraday peak of $2,478. This marks a recovery above the $2,400 level, contrasting with the previous day’s divergence where crypto markets declined despite a rebound in U.S. equities. The recent upward trend appears to be driven by short covering.

Crypto Market Liquidation Totals $279 Million

Data from CoinGlass reveals that over the last 24 hours, the total liquidation volume across all cryptocurrency perpetual contracts reached approximately $279 million, affecting 70,554 traders. Long liquidations amounted to $84.4 million, while short liquidations surged to $195 million, representing 69.8% of the total. This indicates a concentrated squeeze on bearish positions during the current rally.

Ethereum saw the largest single-asset liquidation volume at $92.91 million. The biggest individual liquidation occurred on a BTCUSDT contract on Binance, totaling $11.96 million, which was a short liquidation.

U.S. Equities Show Mixed Performance

U.S. stock markets on Tuesday, October 20th, presented a mixed picture. The Dow Jones Industrial Average rose 529.85 points (1.02%) to close at 52,495.88. The S&P 500 gained 21.84 points (0.28%) to finish at 7,712.57. The Nasdaq Composite saw a slight dip of 6.07 points (-0.02%) to 26,424.82, and the Philadelphia Semiconductor Index fell 32.53 points (-0.29%) to 11,283.81.

Healthcare stocks led the gains, and the Russell 2000 small-cap index advanced 1.7%. Technology stocks experienced a minor decline of 0.3%. Among individual stocks, 3M surged 5.8%, while General Motors dropped 6.8%. Meta fell 1.6%, Alphabet declined 1%, and Netflix closed down 1.7%, further dropping about 6% in after-hours trading following its earnings report. Energy stocks lagged, with crude oil retreating after reaching a five-month high.

Bitcoin ETFs See Inflows, Aiding Market Recovery

On the funding front, U.S. Bitcoin spot ETFs experienced a net inflow of $527 million on October 19th, reversing a trend of outflows over the preceding two weeks. BlackRock’s iShares Bitcoin Trust (IBIT) alone saw inflows of $665 million on that day, according to Farside Investors data. In contrast, Ethereum spot ETFs have recorded net outflows for four consecutive trading days since October 14th, totaling an undisclosed amount. This shift in ETF flows, coupled with the concentrated short liquidation in the crypto market overnight, provides a backdrop for the recent recovery.

Altcoins Show Modest Gains

Solana (SOL) traded at $106.64, up 1.72% in the last 24 hours, with intraday highs reaching $108.25. It remains below its October 14th high of $120.56. Cardano (ADA) saw a more significant increase, trading at $0.338, up 2.84%, making it the strongest performer among the major cryptocurrencies. ADA has recovered from its October 19th low of $0.307.

Ethereum’s recent low was $2,335.57 on October 19th, and its current price represents a roughly 5% recovery. However, it is still approximately 9% shy of its October 7th high of $2,696.56.

Technical Indicators Suggest Neutral to Weak Sentiment

For Bitcoin, based on its October 20th closing price of $83,028, the 14-day Relative Strength Index (RSI) stands at 52.7, indicating a neutral zone. The closing price is below the 20-day moving average ($83,280) but above the 50-day ($81,610) and 200-day ($72,690) moving averages. The MACD shows a bearish crossover, with narrowing histogram bars suggesting weakening momentum. The price is trading near the Bollinger Band’s middle line ($83,280). Key resistance levels are identified at $83,317 and the 30-day high of $87,396. Support levels are seen at the SMA50 ($81,610), the lower Bollinger Band ($80,244), and the 30-day low ($79,800).

Ethereum’s closing price on October 20th was $2,449. The 14-day RSI is at 43.1, suggesting a somewhat weak sentiment. The closing price is below the 20-day ($2,551) and 50-day ($2,551) moving averages but above the 200-day moving average ($2,152). The MACD also indicates a bearish trend with diminishing momentum. The price is trading below the Bollinger Band’s middle line. Resistance levels are at the SMA20 ($2,534), SMA50 ($2,551), and the upper Bollinger Band ($2,767). Support is found at the 30-day low ($2,318), the lower Bollinger Band ($2,301), and the SMA200 ($2,152).

Fear and Greed Index Rebounds to Greed

The Alternative.me Fear and Greed Index registered 63 today, an increase of 8 points from yesterday’s 55, placing it back in the “Greed” territory. Over the past eight days, the index has fluctuated between 53 and 63, with today’s reading at the upper end of that range. Future market sentiment will likely be influenced by sustained Bitcoin ETF inflows, the market’s ability to absorb recent liquidations, and the ongoing U.S. corporate earnings season.