Key Takeaways
- • Bitcoin climbed back to about $77,700 on Tuesday after dipping to $76,270 overnight, as futures liquidations flipped from long-side to short-side forced buybacks.
- • Long positions accounted for 79% of Bitcoin's $96.9 million in liquidations over 24 hours, while shorts took 81% of liquidations in the four hours to noon ET, per CoinGlass data.
- • CryptoQuant contributor XWIN Japan put $76,600 to $76,700 as support and $77,400 to $77,600 as the zone a recovery must reclaim, alongside easing liquidations and sustained spot buying.
- • Glassnode said spot buyers held steady through the sell-off while perpetual sellers drove the drop, and open interest fell about 1.5% over 24 hours to late Tuesday morning.
- • Futures positioning remains undecided ahead of the US midterm election results, with CryptoQuant's BaykusCharts describing neither buyers nor sellers as acting aggressively.
Summary
Bitcoin rose to about $77,700 on Tuesday, recovering from an overnight low of $76,270 as futures liquidations shifted from bullish bets to bearish ones, according to CoinMarketCap data. The reversal forced short sellers to buy back their positions. Over the prior 24 hours, long positions accounted for 79% of Bitcoin's $96.9 million in liquidations, while short positions took 81% of liquidations in the four hours to noon ET, based on CoinGlass data.
The slide began the previous week, when Bitcoin tested a long-term moving average that Galaxy Research monitors, the desk reported. A rebound to about $78,700 faded on Monday, with selling beginning before Wall Street opened, according to CryptoQuant contributor XWIN Japan. The decline resumed overnight as US technology stocks fell. The selling coincided with a contraction in spot ETF and stablecoin supply, Galaxy Research reported earlier on Tuesday.
Glassnode said on Monday that spot buyers held their ground through the sell-off. "Perpetual sellers drove the drop, yet longs keep paying up in funding and options traders are buying protection, while spot buyers held steady," the firm wrote. Open interest fell about 1.5% across exchanges in the 24 hours to late Tuesday morning, CoinGlass data show. Bitcoin funding rates on Hyperliquid stayed positive through the drop, meaning long-position holders continued paying to maintain their positions. Options traders had been paying a premium for downside protection ahead of the vote, Galaxy Research reported on Monday.
XWIN Japan identified $76,600 to $76,700 as support, with a recovery needing to reclaim $77,100 to $77,200 and then $77,400 to $77,600, alongside easing liquidations and steady spot buying. CryptoQuant's BaykusCharts said neither buyers nor sellers are acting aggressively in futures, based on the firm's 90-day measure of futures market orders. CryptoQuant CEO Ki Young Ju wrote that the US midterms represented the year's last major source of uncertainty for short-term investors. Bitcoin was holding near the top of its recent range heading into the first election results, per CoinMarketCap.
The slide began the previous week, when Bitcoin tested a long-term moving average that Galaxy Research monitors, the desk reported. A rebound to about $78,700 faded on Monday, with selling beginning before Wall Street opened, according to CryptoQuant contributor XWIN Japan. The decline resumed overnight as US technology stocks fell. The selling coincided with a contraction in spot ETF and stablecoin supply, Galaxy Research reported earlier on Tuesday.
Glassnode said on Monday that spot buyers held their ground through the sell-off. "Perpetual sellers drove the drop, yet longs keep paying up in funding and options traders are buying protection, while spot buyers held steady," the firm wrote. Open interest fell about 1.5% across exchanges in the 24 hours to late Tuesday morning, CoinGlass data show. Bitcoin funding rates on Hyperliquid stayed positive through the drop, meaning long-position holders continued paying to maintain their positions. Options traders had been paying a premium for downside protection ahead of the vote, Galaxy Research reported on Monday.
XWIN Japan identified $76,600 to $76,700 as support, with a recovery needing to reclaim $77,100 to $77,200 and then $77,400 to $77,600, alongside easing liquidations and steady spot buying. CryptoQuant's BaykusCharts said neither buyers nor sellers are acting aggressively in futures, based on the firm's 90-day measure of futures market orders. CryptoQuant CEO Ki Young Ju wrote that the US midterms represented the year's last major source of uncertainty for short-term investors. Bitcoin was holding near the top of its recent range heading into the first election results, per CoinMarketCap.
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