Bitcoin price has fallen below $80,000 as leveraged traders face fresh liquidations, ETF withdrawals weigh on sentiment, and investors prepare for a critical week of U.S. economic announcements.
Summary
- Bitcoin price fell below $80,000 as leveraged long liquidations added pressure to an already weakened market.
- U.S. spot Bitcoin ETFs recorded approximately $773.5 million in combined withdrawals across two trading sessions.
- The Federal Reserve’s October 28 decision and October 30 options expiry could bring further volatility.
- Bitcoin price faces support near $79,000, while a recovery above $82,000 could improve short-term momentum.
According to crypto.news Bitcoin price data, BTC was trading near $79,947 on October 26, down 1.02% over 24 hours. The cryptocurrency had fallen as low as $79,332 during the session, while its market capitalization stood near $1.61 trillion.
Meanwhile, the latest decline follows Bitcoin’s failed attempt to recover toward $85,000 last week, leaving the cryptocurrency struggling around a price level that previously attracted buyers. Trading volume stood at approximately $17.55 billion over 24 hours.
Bitcoin price falls as long liquidations accelerate selling
Leveraged traders have faced considerable pressure as Bitcoin price struggles to reclaim $80,000, with recent market declines forcing exchanges to close positions that no longer meet margin requirements.
Data from CoinGlass showed $154.23 million in cryptocurrency liquidations over a 24-hour reporting period, affecting over 62,000 traders. Long positions accounted for $117.99 million, compared with $36.23 million in short liquidations.
Ethereum recorded the largest liquidation total at $43.17 million, while Bitcoin followed with $32.94 million. The figures indicate that traders betting on higher prices absorbed most of the losses during the reporting period.
As crypto.news previously reported on October 19, Bitfinex analysts had warned about another potential liquidation wave after futures exposure grew despite declining Bitcoin prices.
The current selling follows several unsuccessful attempts to hold gains above $83,000. Bitcoin price briefly approached $85,000 last Wednesday before retreating, eventually falling to approximately $79,100 over the weekend.
Bitcoin ETF outflows weaken demand ahead of Fed decision
Institutional fund activity has provided another source of concern after U.S. spot Bitcoin exchange-traded funds reversed a three-day inflow streak.
Farside Investors data showed that the funds lost $635.6 million on October 22, followed by another $137.9 million on October 23. The combined withdrawals reached approximately $773.5 million.
BlackRock’s IBIT and Fidelity’s FBTC accounted for $471.6 million of the October 22 withdrawals, representing nearly three-quarters of that day’s total.
Despite the reversal, the five-day ETF balance remained positive by approximately $301.2 million. Fund redemptions do not necessarily mean equivalent Bitcoin sales occurred immediately on spot exchanges.
Market attention has now turned to the Federal Reserve’s October 27–28 policy meeting, with investors expecting interest rates to remain unchanged at 3.75%–4.00%.
According to Yardeni Research, CME FedWatch probabilities placed the likelihood of a rate increase this week near 9%, although expectations for another hike in December remained elevated.
The week includes September’s personal consumption expenditures inflation report on October 29 and an estimated $11 billion Bitcoin options expiry on October 30.
Meanwhile, President Donald Trump’s October 25 announcement that the United States would not attack Iran that day offered some relief to financial markets following renewed concerns over military escalation.
According to the Kobeissi Letter, S&P 500 futures rose 0.5%, Nasdaq 100 futures gained 0.7%, and Dow Jones futures advanced 0.4% after the announcement. Oil prices moved in the opposite direction, with WTI crude falling 1.5% and Brent declining 1.0%.
The reaction followed last week’s rise in energy prices amid Middle East tensions. However, Bitcoin remained under pressure around $80,000 despite the improvement in equity futures, with traders awaiting the Fed’s policy decision.
Retail Bitcoin deposits rise while whales remain cautious
Separate on-chain data shows contrasting behavior between smaller Bitcoin holders and large investors.
CryptoQuant analyst Darkfost reported that Bitcoin inflows to Binance from retail-sized wallets had climbed to their highest level in six months.
According to his analysis, the 30-day cumulative value of retail deposits climbed from approximately $5.5 billion to $10.75 billion.
During the same period, deposits attributed to whales fell from $5.9 billion in late August to roughly $3.8 billion, suggesting that larger holders were sending fewer coins to exchanges.
Darkfost interpreted the retail activity as possible selling by smaller investors seeking to exit positions following Bitcoin’s recovery from previous lows. Exchange deposits, however, do not establish that every transferred coin was sold.
The analyst maintained that reduced whale inflows could indicate a reluctance among larger investors to sell at current prices.
Bitcoin price prediction: Can BTC recover before October ends?
Bitcoin’s technical indicators currently favor sellers, with the Relative Strength Index at 40.94, below its moving average of 47.53 and the neutral 50 threshold.
The Moving Average Convergence Divergence indicator presents a similar picture. The MACD line stood at -434.42 against a signal line of -55.83, leaving the histogram at -378.59.
Immediate support sits around $79,000–$80,000. A sustained daily close below $79,000 could bring $75,000 into consideration, followed by $70,000 if selling continues.
For buyers, recovering $82,000 would be an initial improvement, with resistance expected around $85,000–$87,000.
Analyst Crypto Patel has maintained a longer-term bullish scenario, identifying $41,000–$56,000 as a potential accumulation region and projecting considerably higher targets. His projections remain speculative and do not establish a likely October trading range.
An existing October Bitcoin price assessment placed its conditional downside closing range between $76,000 and $80,000, although those scenarios were developed from October 5 market conditions.
The Federal Reserve is scheduled to announce its policy decision at 2 p.m. ET on October 28, followed by Chair Kevin Warsh’s press conference at 2:30 p.m. ET. September’s PCE inflation figures are scheduled for release the following day.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.