Bitcoin’s Slide Hits Long Positions: Critical Zone After $556 Million in Liquidations!
As Bitcoin fell below $84,000, 24-hour liquidations in the crypto market reached approximately $556 million, while analysts pointed to the $82,000–$83,000 zone as key to preserving the bullish outlook.
According to price data cited by The Block, Bitcoin (BTC) fell as low as approximately $83,800. At the time of the report’s October 7 reading at 06:20 Turkey time, BTC was trading at $84,071, down 1.7% over the previous 24 hours. Ethereum (ETH) fell 3.3% over the same period to $2,612.
The bulk of liquidations came from those betting on gains
According to CoinGlass data, $555.6 million worth of crypto positions were forcibly closed over the past 24 hours. Of that amount, $487.2 million came from long positions, which are opened on the expectation that prices will rise.
Most of the activity occurred in the past four hours: $415.3 million of the $429.8 million in liquidations during that period involved long positions. Liquidation refers to the forced closure of leveraged positions when losses grow or collateral becomes insufficient.
Dominick John, an analyst at Zeus Research, attributed the pullback largely to profit-taking and forced long liquidations. According to John, rising open interest and funding rates ahead of the decline left the market more vulnerable to the unwinding of leveraged positions.
Why is the $82,000–$83,000 zone being watched for Bitcoin?
Jeff Ko, chief analyst at ViaBTC, said that if Bitcoin holds the $82,000–$83,000 zone, he would view the current move as a constructive period of consolidation following September’s breakout.
Ko noted that Bitcoin ended the third quarter up approximately 40%, while spot Bitcoin ETFs saw $6.5 billion in inflows over the same period. For that reason, the analyst’s assessment hinges on whether this support zone holds during the pullback.
Market sentiment also weakened: the Crypto Fear and Greed Index fell to 62 from 67 the previous day, but remained in the “greed” zone.