Amid bearish sentiment and technical indicators suggesting potential further dips, a recent decline in Bitcoin futures liquidations is offering a glimmer of hope.
On October 1, over 4,000 Bitcoin longs were liquidated, marking the second-largest liquidation event of the year.
This massive shakeout hints at a potential local bottom, which could trigger a short-term price rebound. However, for a sustained recovery, strong buying momentum will be crucial.
Amid the bearish buzz and technical signs of more dips, a drop in bitcoin futures liquidations signals less selling pressure.
On October 1, over 4,000 $BTC longs were liquidated—the year’s second-largest event—hinting at a potential local bottom and a short-term bounce back.… pic.twitter.com/MyxrDRwFEB
— Kyledoops (@kyledoops) October 4, 2024
Encouragingly, demand for Bitcoin from U.S. spot ETFs has been on the rise. After net selling 5,000 BTC on September 2, these funds reversed course, buying 7,000 BTC by the end of the month, the highest amount since July 21.
This increase in demand could fuel further price growth if the trend continues into the final quarter of 2024.
Notably, in Q1 of 2024, spot ETFs were purchasing nearly 9,000 BTC daily, a factor that helped drive prices to new highs.
#Bitcoin demand from US spot ETFs is rising.
They went from net selling 5K $BTC on Sept 2 to buying 7K BTC at September’s end—the highest since July 21.
In Q1 2024, spot ETFs bought nearly 9K #BTC daily, boosting prices to new highs.
If this trend continues, prices may rise… pic.twitter.com/6EQ9JXUzdw
— CryptoQuant.com (@cryptoquant_com) October 4, 2024
Bitcoin Spot ETFs Recorded Total Net Outflow Of $54 Million
However, recent ETF activity has shown mixed results. On October 3, Bitcoin spot ETFs recorded a total net outflow of $54.133 million.
Some funds, like FBTC and ARKB, experienced significant outflows of $37.21 million and $57.97 million, respectively.
Meanwhile, IBIT saw an inflow of $35.96 million, suggesting that some investors are still betting on Bitcoin’s long-term potential.
Bitcoin spot ETF had a total net outflow of $54.133 million on October 3. FBTC had an outflow of $37.21 million, ARKB had an outflow of $57.97 million, and IBIT had an inflow of $35.96 million. Ethereum spot ETF had a total net outflow of $3.1955 million. https://t.co/59u0BnEqLG
— Wu Blockchain (@WuBlockchain) October 4, 2024
In summary, while there are signs of reduced selling pressure and rising institutional demand, Bitcoin’s path forward remains uncertain. Continued strong buying from ETFs and other institutional players will be necessary to push prices higher and maintain any potential recovery as we head into Q4 2024.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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