Bitcoin Holds Near $85,500 After Failed Breakout and ETF Outflows

Bitcoin (BTC) is trading near $85,595 on Tuesday, October 6, after failing to break above $87,000. The cryptocurrency saw more than $172 million in leveraged positions liquidated over the past 24 hours, with long positions losing $101 million and short positions $71 million. Meanwhile, U.S. spot Bitcoin ETFs recorded net outflows of $89.8 million on October 5, reversing a $189.9 million inflow from October 2.

The market remains volatile, with Bitcoin's 24-hour range stretching from $85,009 to $86,662. The asset's market capitalization stands at $1.72 trillion, with a 24-hour trading volume of about $27.79 billion. Open interest in perpetual futures is approximately $68.95 billion, indicating significant leveraged trading activity.

Strategy, the company formerly known as MicroStrategy, recently purchased 334 BTC for about $28.7 million between October 1 and October 4, adding to its holdings of 848,000 BTC. Traders are now looking ahead to the Federal Reserve’s meeting minutes, due Wednesday, for further direction. The minutes may provide insights into the likelihood of another rate hike this year, which could impact Bitcoin's price.

Key support levels for Bitcoin are currently at $85,000 to $85,500, followed by $83,400 to $84,000 and $82,500. On the upside, resistance lies at $86,700 to $87,000, the yearly open near $87,570 to $87,720, and then $90,000. Until spot demand returns, Bitcoin may continue to trade within the $85,000 to $87,000 range.