Bitfinex analysts said $115,200 is the key level to defend for Bitcoin to regain its previous ATH and set new records.
Bitcoin (BTC), Ethereum (ETH), and altcoins started the new week with sharp declines yesterday. Following yesterday’s sell-off, over $1.7 billion worth of leveraged positions were liquidated.
October, historically seen as a bullish month, is expected to be the starting point for a new wave of bullish activity as investors try to digest one of the biggest liquidations of the year.
Analysts predict that a speech by Fed Chair Jerome Powell and Friday’s PCE inflation data could guide the cryptocurrency market in October, following the biggest deleveraging event of the year, according to The Block.
At this point, Bitfinex analysts stated that following the FED’s 25 basis point interest rate cut decision, futures positions were reset and liquidity returned.
Analysts said that $115,200 is the key level to defend for BTC to regain its previous ATH and set new records.
Conversely, a daily drop below $115,200 risks a drop to $105,500.
BRN analyst Timothy Misir noted that Wall Street has taken a cautious approach following the massive wave of liquidations.
At this point, the analyst, citing ETF data as an example, said that there was a net outflow of $363 million from US spot Bitcoin ETFs and $76 million from Ethereum ETFs yesterday.
However, the analyst said that institutions and large investors are active and optimistic about Bitcoin and the market in a broader perspective: “Monday’s decline cleared out the proliferating long positions and left cleaner liquidity in the market. This is a positive development if larger buyers such as ETFs, treasury bonds, and investors holding 10-10 thousand BTC continue to absorb the supply.”
The analyst noted that there have been three major exchange withdrawal waves in the last 48 hours, with wallets with a balance of 10-10 thousand BTC accumulating approximately 56,000 BTC since August 27, and exchange balances falling by approximately 31,000 BTC in four weeks.
He stated that these data are signals that whales are buying on the decline, while some investors are selling by taking advantage of the rise.
