Bitcoin's price experienced a rebound, briefly touching $103,000 before encountering resistance, as approximately 30% of the Bitcoin supply is currently estimated to be "underwater". This means that nearly a third of Bitcoin investors are holding BTC at a loss, even at prices around the $100,000 mark.
The recent market movements follow a period where Bitcoin reached its lowest levels since June 22nd. A significant surge in crypto long liquidations, exceeding $1.7 billion within 24 hours, preceded the attempted recovery. This liquidation event appears to have provided some relief, triggering short covering and prompting traders to open aggressive long positions.
According to trader Skew, the opening of aggressive long positions seemed to balance out deltas, especially considering the net short positioning from the previous day. Another commentator, Exitpump, noted that aggregated spot orderbooks depth delta had flipped green, signaling a potential upcoming bottom. However, they cautioned that this indicator is lagging and its effects may take time to materialize.
The hopes for a sustained market recovery also influenced order-book liquidity, with long positions now neutralized and open interest significantly reduced. Liquidation maps indicated that most long positions had been cleared out, with some remaining around the $97,000 - $99,000 level. On the upside, there were major liquidity clusters identified at $102.5k, $111.5k, $116k, and $117.5k.
On-chain data reveals the profitability challenges faced by holders amidst the recent panic selling. CryptoQuant reported that almost 30% of the BTC supply was in a loss on Tuesday. While concerning, historically, such levels have often signaled local bottoms rather than further breakdowns.
To avoid a deeper bear market, Bitcoin needs to maintain its position above its 200-week EMA, await the Federal Reserve's stealth quantitative easing (QE), and see US liquidity return following the shutdown.
Currently, one Bitcoin (BTC) is worth ₩148,967,950, which is a 0.6% decline since yesterday. In the last 24 hours, the total volume of Bitcoin traded was ₩158,327,996,253,155. Bitcoin can be bought and sold across 603 crypto exchanges, with Coinbase Exchange and Bybit being the most active exchanges.
