Bitcoin Long Liquidations Hit $280 Million as BTC Slips Under $84,000
Key Takeaways
- •Bitcoin hit rejection near $87,000 on Wednesday before dropping under $84,000 at the Wall Street open, approaching its week-to-date low.
- •Approximately $280 million in Bitcoin long positions were liquidated over four hours, based on CoinGlass figures.
- •CryptoQuant reported cumulative 30-day apparent spot demand at negative 180,000 BTC as of Tuesday, though it noted futures demand keeps increasing and total demand is recovering slightly.
- •Analyst Rekt Capital said Bitcoin must stay above or successfully retest roughly $82,000 on any dip to avoid falling back into its $60,000-$80,000 range.
- •Despite gaining more than 35% since the week beginning Aug. 17, Bitcoin continues to struggle for spot-market demand, and earlier analysis identified $90,000 as a likely profit-taking and consolidation area.
Bitcoin (BTC) was rejected near $87,000 on Wednesday as on-chain data pointed to negative spot demand, with the leading cryptocurrency slipping below $84,000 around the Wall Street open and triggering $280 million in long liquidations over four hours.
BTC falls toward $84,000, nears week-to-date low
Data from TradingView tracked a second attempt to break above $87,000 before BTC/USD fell to local lows under $84,000 into the Wall Street open. The two levels marked the upper and lower boundaries of a narrow intraday range, with liquidity thickening on both sides of the spot price as traders attempted to force a breakout from the sideways range.
Figures from CoinGlass tallied long liquidations over the four hours prior to the time of writing at $280 million.
Commenting on the current landscape, trader and analyst Rekt Capital flagged $82,000 as the level for bulls to hold should the lower-timeframe structure break down.
“For bullish continuation and to avoid reverting back into the $60k-$80k Range, Bitcoin would need to stay above or at minimum successfully retest ~$82k on any future dip,” he wrote in a post on X.
As Cointelegraph reported, the current range carries implications for certain investor cohorts: the aggregate cost basis of United States spot Bitcoin exchange-traded funds (ETFs) sits just below $86,000. Earlier, analysis highlighted $90,000 as the likely next area in which BTC/USD will consolidate, due to the increased likelihood of profit-taking by traders, according to a separateCointelegraph analysis](https://cointelegraph.com/markets/bitcoin-bull-market-confirmed-but-90k-presents-profit-taking-risk-analysis).
Spot demand shows only modest improvement
Despite gaining more than 35% since the week beginning Aug. 17, Bitcoin continues to face an ongoing struggle to attract spot-market demand. In its latest research, on-chain analytics platform CryptoQuant claimed that interest remained largely confined to derivatives markets.
“The negative value of $BTC spot demand has narrowed slightly, while futures demand continues to increase. Total demand is also showing a slight recovery compared to the previous day,” the firm said in a blog post published on the day.
An accompanying chart showed that cumulative 30-day apparent spot demand measured -180,000 BTC as of Tuesday, with negative values reflecting supply outpacing demand over the 30-day lookback period.
“Although total demand remains in negative territory, the trend is shifting toward the positive. If the current momentum persists, spot demand will also flip to positive. That moment will mark the beginning of a more significant rally,” CryptoQuant added.
This article is based on reporting from Cointelegraph.
