TLDR:
- Bitcoin price spiked to nearly $68,000 on October 15, 2024
- Total crypto liquidations reached $285 million in 24 hours
- Bitcoin spot ETFs saw $556 million inflows on October 14
- BTC price is testing resistance around $68,000-$69,000 level
- Analysts note increasing apparent demand for Bitcoin
Bitcoin’s price surged to nearly $68,000 on October 15, 2024, reaching its highest level since July. The cryptocurrency market saw significant activity as traders rushed to adjust their positions, resulting in $285 million in liquidations over 24 hours.
The price spike coincided with substantial inflows into Bitcoin spot ETFs. On October 14, these investment vehicles attracted over $556 million, marking the largest single-day inflow since early June. Fidelity’s ETF (FBTC) led the charge with $239 million in new investments, while Bitwise’s offering (BITB) contributed $100 million.
This renewed interest in Bitcoin ETFs suggests growing institutional participation in the crypto market. The trend extends beyond Bitcoin, with Ethereum spot ETFs also experiencing a net inflow of $17 million on the same day.
The sudden price movement caught many traders off guard. Short positions, betting on price decreases, suffered $130 million in liquidations. However, as the price quickly retraced some of its gains, long positions also faced $155 million in liquidations, highlighting the market’s volatility.
Bitcoin’s price action is testing key resistance levels. Traders are now eyeing the $69,000 mark, which represents the previous all-time high set in 2021. A breakthrough above this level could signal a significant shift in market structure and potentially lead to new record highs.
Analysts point to several factors supporting the bullish momentum. Ki Young Ju, CEO of CryptoQuant, notes that Bitcoin’s apparent demand is increasing, mirroring levels seen in February 2024 before the last major price surge. This metric, which compares new supply from mining to changes in long-term holdings, has historically preceded significant price rises.
On-chain researcher Axel Adler Jr. reports a 3% increase in demand for coin purchases from new investors over the past 10 days, indicating growing interest from fresh market participants.
Despite the positive indicators, some analysts urge caution. The recent price rally appears to be largely driven by the derivatives market, with open interest in Bitcoin futures contracts rising 18% since October 11. This leverage-driven growth could increase the risk of sharp price corrections if market sentiment shifts.
The Coinbase and Kimchi premiums, which indicate retail investor interest in the U.S. and Korean markets respectively, have shown positive upticks. However, these premiums remain negative overall, suggesting that retail participation has room to grow before reaching levels typically associated with market tops.
As Bitcoin approaches the psychologically important $70,000 level, traders are closely watching key resistance zones between $67,000 and $68,300. The cryptocurrency briefly entered this supply zone on October 15 before experiencing a sharp correction.
Historical patterns suggest that Bitcoin may face challenges in immediately breaking above $70,000. The market has typically seen periods of correction following the establishment of new higher highs. For a sustained move above this level, Bitcoin would likely need to close a daily position above $68,300 in the coming days.
The current market dynamics present both opportunities and risks for traders and investors. While the strong inflows into ETFs and increasing apparent demand paint a bullish picture, the high levels of leverage in the market could lead to increased volatility.
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