Bitcoin Liquidations Surge as BTC Falls Below $80K

| bitcoinist.com
Bitcoin came under renewed pressure, briefly falling to about $79,280 before recovering above $80,000. The move followed an earlier drop to around $81,000 and rebound to $83,635. In the later sell-off, crypto markets recorded $436.44 million in liquidations over four hours, including $404.15 million in long positions. More than 90% of liquidations in Bitcoin and Ether were longs. Earlier figures showed $820.84 million in liquidations over 24 hours, with longs accounting for $689.11 million; Bitcoin and Ether led losses, and Binance represented 50.6% of the total. A subsequent short squeeze may have supported the rebound, but liquidations alone do not confirm a market bottom. Bitcoin ETF flows were mixed. U.S. spot Bitcoin ETFs saw about $679 million in outflows from October 5 to 9, followed by another $65.40 million on October 12. Later, they recorded $773 million in combined outflows on Thursday and Friday, while still ending that week with $304.73 million in net inflows. The withdrawals coincided with price weakness but do not prove its cause. BitMEX co-founder Arthur Hayes said he had closed Maelstrom’s directional trading book and taken profits on some tokens, citing macroeconomic and geopolitical uncertainty. For Bitcoin traders, the immediate test is whether BTC can hold above $80,000. Derivatives open interest, ETF flows, and upcoming U.S. inflation data may help gauge whether selling pressure is easing. Earlier technical levels put support at $80,660, with $74,340 as a lower level to watch, and resistance at $84,000 and $87,145. The sharp Bitcoin long liquidations highlight near-term leverage risk, but do not by themselves establish a lasting trend reversal.
Bearish
The immediate price impact is bearish for Bitcoin. A dip below $80,000 and heavy long liquidations point to forced selling and leave leveraged traders vulnerable to further volatility. The decline in spot ETF flows and uncertainty cited by Arthur Hayes add to the cautious near-term backdrop, although the ETF figures are mixed because the week still ended with net inflows. A rebound or short squeeze can trigger sharp counter-moves, but it is not, on its own, evidence that downside pressure has ended. In the short term, traders may watch whether BTC holds $80,000, alongside derivatives open interest and ETF flows; a failure to hold support could renew selling, while recovery through the cited resistance levels would improve the outlook. Over the longer term, liquidations are closed positions rather than proof of a lasting trend change. Continued demand and a sustained recovery would be needed to establish a more durable bullish shift.