Bitcoin Price Approaches $87,000 Amidst Short Liquidations, Market Uncertainty Persists

Bitcoin’s price surged towards $87,000 on Friday, a move accompanied by over $120 million in Bitcoin short liquidations within a 24-hour period. The cryptocurrency reached a high of $86,857 on Bitstamp before settling below $86,000. This price action occurred as ask liquidity above previous resistance levels diminished, with some sell orders reportedly removed.

Data from TradingView indicated that BTC/USD hit $86,857 on Bitstamp, marking a significant upward movement that pushed Bitcoin’s price to its highest level since September 23. According to Glassnode, a concentration of sell orders around the $85,000 mark had previously constrained price action throughout the week. However, buyers successfully navigated this barrier. Glassnode noted on X that with reduced ask liquidity above this level, the price could potentially move higher, adding that remaining sell orders appeared to have been withdrawn.

Earlier in the week, Cointelegraph reported the appearance of sell orders exceeding $30 million around $85,700. Data from CoinGlass indicated a cluster of potential liquidations above $87,300 following the initial notable move, suggesting that liquidation exposure was concentrating at higher price levels. Over the 24 hours leading up to the time of writing, Bitcoin short liquidations totaled $122 million, while cross-crypto liquidations reached $210 million.

The $86,000 level remains a significant area, representing the aggregate breakeven zone for investors in US spot Bitcoin exchange-traded funds (ETFs). On October 1, these ETFs recorded net inflows of $102.7 million, according to Farside Investors. BlackRock’s iShares Bitcoin Trust (IBIT) was a notable recipient, attracting $195 million, though outflows from several other funds moderated the overall daily inflow.

In its newsletter, The Week Onchain, Glassnode suggested that a sustained notable move, coupled with higher trading volume and renewed ETF inflows, would be necessary to suggest broader support for Bitcoin’s uptrend. While daily ETF inflows have cooled since September 21, when the daily figure reached nearly $999 million, Glassnode observed that the funds are still buying, albeit at a reduced pace. A return to inflows near the previous higher pace would be the clearest sign of renewed ETF demand, the analysis stated.

The area immediately above $87,800 is now considered a new resistance hurdle. The extent to which this level will act as resistance, the pace of future ETF inflows, and the impact of liquidation exposure at higher price levels remain uncertain. While the recent price surge and liquidations provide market signals, they do not definitively suggest a sustained uptrend, and further data will be needed to clarify the market’s direction.

Why This Matters

The materials describe a narrow update: Bitcoin’s price rose to near $87,800, breaking through a concentration of sell orders around $85,000. Whether the area immediately above $87,800 will act as resistance.

Broader Context

Source materials place the factual news in this context: Bitcoin buyers broke through a wall of ask liquidity to reach new October BTC price highs near $87,800, with the area immediately above now a new resistance hurdle.