Key facts
- Bitcoin fell to $81,749.83 on Oct. 7, undercutting the previous day's floor of $82,776.30.
- Spot Bitcoin ETFs saw $484.9 million in outflows on Oct. 7, the largest daily loss since June.
- Approximately 87.5% of the $429 million in liquidated positions over 24 hours were long positions.
- Bitcoin's daily ADX, a measure of trend strength, is 40.7, indicating a strong trend.
- The 50-day EMA remains above the 200-day EMA, signaling an intact long-term uptrend.
Bitcoin experienced a significant price drop on October 7, falling to a low of $81,749.83 and breaching the $82,776.30 support level. This decline has effectively erased nearly half of the cryptocurrency's gains from September, defying the typical 'Uptober' trend where October historically sees strong performance.
The broader market sentiment is also being influenced by macroeconomic factors. Wall Street retreated from record highs as Brent crude oil prices hovered near $100 a barrel and Treasury yields remained near their highest levels since 2002. Minutes from the latest Federal Reserve meeting indicated that most officials anticipate another rate hike before the end of the year, contributing to the pressure on risk assets like Bitcoin.
Technical indicators show a mixed picture. While the daily trend remains strong with the 50-day exponential moving average above the 200-day EMA, momentum is softening. The Relative Strength Index (RSI) fell to 45.8, below the 50-point mark that separates bullish from bearish momentum. The Squeeze Momentum Indicator suggests compressed volatility, potentially preceding a larger price move.
In addition to price action, Bitcoin ETFs saw substantial outflows on October 7, marking their worst day since June. Approximately $484.9 million was withdrawn, with 87.5% of the liquidated positions being long. This leverage-amplified sell-off saw $429 million in positions liquidated over 24 hours, with Bitcoin and Ethereum accounting for significant portions.