BTC Pushes Toward $87K Mark While Short Squeeze Exceeds $120 Million
BTC traders surged past significant ask liquidity barriers to establish fresh October price peaks approaching $87,800, creating a new resistance threshold in the immediate overhead range.
Bitcoin (BTC) approached the $87,000 threshold on Friday as liquidations of BTC short positions surpassed $120 million during a 24-hour period.
Key points:
- Bitcoin penetrated a wall of sell orders positioned near $85,000, climbing to its peak price level since Sept. 23 at $86,857.
- A heatmap from CoinGlass revealed a concentration of possible liquidations beyond $87,000 in the wake of the breakthrough.
- Analysis from Glassnode indicated that stronger Bitcoin ETF capital inflows would assist in validating wider support for the BTC price rally.
Bitcoin buyers battle liquidity walls below $87,000
Information from TradingView indicated BTC/USD climbed to $86,857 on Bitstamp prior to retracing beneath the $86,000 level.
The upward movement, which represented Bitcoin's peak level since Sept. 23, came after new variations in liquidity across exchange order books. A grouping of sell orders positioned around $85,000 had maintained price action in a range throughout the week, but purchasing activity managed to penetrate that obstacle, according to information from onchain analytics platform Glassnode.
With reduced ask liquidity above, this should allow price to move up faster
Glassnode posted on X, noting that the outstanding sell orders "seem to have been removed."
Earlier during the week, Cointelegraph had documented that over $30 million worth of sell orders had materialized around the $85,700 mark. Information from CoinGlass revealed a grouping of possible liquidations beyond $87,300 after the initial breakthrough, indicating that liquidation exposure was accumulating at elevated price points.
BTC short liquidations during the 24 hours leading up to the time of publication reached $122 million, while the total across all cryptocurrencies stood at $210 million.
ETF inflows decline after 11-month record
The zone surrounding $86,000 continues to hold importance, representing the combined breakeven level for participants in the US spot Bitcoin exchange-traded funds (ETFs).
Daily capital flows have diminished since Sept. 21, when the daily total reached its peak in nearly a year at $999 million.
The funds are still buying, but at a small fraction of the pace of those two days. A return to inflows near that pace would be the clearest sign of renewed ETF demand
On Oct. 1, US spot Bitcoin ETFs documented net capital inflows of $102.7 million, based on data from Farside Investors. The biggest fund, BlackRock's iShares Bitcoin Trust (IBIT), captured $195 million, with withdrawals from multiple other funds lowering the daily total.