Update
Bitcoin Leverage Liquidations
Bitcoin's price dropped by 1.5% to around $82,400 on Monday, leading to the liquidation of 89,032 leveraged positions, according to Coinglass. This liquidation primarily affected long positions, with shorts also impacted. The update highlights the risk of over-leveraged positions in the market. Bitcoin has seen a 3.5% decline over the past seven days, but remains 6.7% above its September 12 level. The current market sentiment suggests that the loss of over-leveraged positions has caused a significant drop in the market. About 1.45 million BTC has a cost basis between $84,000 and $86,500, indicating a small loss. The market is currently at 69.6% supply in profit, below the usual 75% seen during sustained advances. Bitfinex predicts that buyers are not coming back in meaningful size, suggesting that the rally is running on fumes. The market is closely watching the level at $81,300, which is a critical support level. If this level is breached, it could lead to further declines, potentially triggering ETF outflows. The market is currently experiencing a lack of buyer interest, with Bitfinex's strategists noting that good macro news only lifts Bitcoin when spot buyers actually follow through. The market is expected to remain volatile until there is a clear indication of buyer interest in the market.