Bitcoin Faces Correction as Long Liquidations Reach $280 Million
- Bitcoin (BTC) was rejected near $87,000 and fell below $84,000, leading to $280 million in long liquidations within four hours.
- Key support for BTC is identified at $82,000 to prevent a further decline.
- Cumulative spot demand for Bitcoin remains negative on a rolling 30-day basis, measured at -180,000 BTC as of Tuesday.
- Despite a gain of over 35% since mid-August, Bitcoin struggles to attract spot-market demand while futures interest increases.
- The aggregate cost basis for US spot Bitcoin exchange-traded funds (ETFs) is just below $86,000.
As Bitcoin’s price fluctuates within a narrow range, the ongoing negative spot demand indicates challenges in attracting investors despite recent gains. Analysts highlight the importance of maintaining support levels to avoid further declines.
With long liquidations hitting $280 million and cumulative spot demand at -180,000 BTC, the current market conditions are critical for Bitcoin’s price stability.(Source)
