Bitcoin at Critical Junction: Support and Resistance Levels to Watch
Bitcoin has been consolidating in the $83,000-$85,000 range following its recent surge above $87,000. Bitfinex analysts warn that this high cost zone between $85,000 and $86,500 is a significant resistance level.
In their analysis, Bitfinex notes that excessive leverage in the market has been significantly reduced due to the recent correction in Bitcoin. This reduction of over 10% in open positions has led to total liquidations reaching approximately $581 million.
According to Bitfinex, for Bitcoin to initiate a new upward movement after clearing a large portion of leveraged positions, real buyers in the spot market need to step in. Additionally, the analysts recommend closely monitoring flows into US spot Bitcoin ETFs, which have declined from $999 million at the beginning of the week to $134.5 million on Friday.
Bitfinex also highlights a notable institutional purchase by Strategy, who acquired 1,665 Bitcoin for approximately $142.7 million between September 21-27.