Bitcoin was unable to maintain the $80,000 threshold after rebounding to $81,455 on August 28. Then its price dropped to $76,877, before a slight increase. This rejection occurs, while many sell orders remain visible between $80,800 and $83,000. Their presence can slow down a recovery, however it does not justify either the identity of their holders or their real intention to sell.
In brief
- Bitcoin fails to hold $80,000 after rebounding to $81,455.
- Several liquidity zones surround BTC, with a high concentration below the current price.
- Kevin Warsh’s speech reinforces the pressure, without providing any rapid prospect of monetary easing.
- Liquidations are increasing in the crypto market, amid increased volatility.
- The areas of $75,000–78,500 and $80,000–84,000 become levels to watch.
Several liquidity zones now govern bitcoin
On the evening of August 27, BTC reached $81,000, before giving up all of its capital gains. First, it fell below $79,300, then the correction intensified after Kevin Warsh’s speech in Jackson Hole.
CryptoReviewing publishes an analysis in which it reports a significant concentration of orders and liquidation levels around prices. The configuration reveals four main zones:
- Large sell orders between $80,800 and $83,000;
- Buy orders concentrated between $78,000 and $79,000;
- Nearly $5.7 billion in liquidity estimated between $75,000 and $78,500;
- About $2.8 billion between $81,500 and $84,000.
The lower zone thus constitutes more than twice the amount evaluated above the price. This asymmetry highlights that a pullback would trigger more liquidations than a corresponding rebound. However, it does not guarantee a correction towards $75,000.
The “walls” found in an order book are equivalent to stated intentions. Their holders must move or cancel them before their execution. Also, their volume does not allow whales to be counted with certainty. The term therefore describes a concentration of large orders, and not transfers already made.
Kevin Warsh’s speech increases the pressure
The fall started before the speech by the president of the Federal Reserve (Fed). It continued after his intervention, with a new low point at $76,877. On August 28, bitcoin was trading around $77,600, down nearly 2.8% over twenty-four hours, according to data provided by CoinGecko.
No immediate decision on rates was announced by Kevin Warsh. In his official speechhe above all declined the systematic recourse to “forward guidance”which involves guiding markets on the future trajectory of monetary policy.
The head of the Fed wants the institution to maintain more freedom and adapt its decisions to available statistics. He also recalled that inflation remains too high. The PCE index increased by 3.7% over one year and by an annualized rate of 4.1% over six months, against an official target of 2%.
These comments did not provide the markets with the rapid prospect of monetary easing. They therefore limited the immediate demand for cryptos. The economic strength and massive investments made in the artificial intelligence sector also reduce the urgency of a rate cut.
It remains difficult to confer all the correction to this single intervention. Bitcoin had already gained around 28% in August and encountered resistance around $81,000. The settlement of a large options expiry as well as profit taking also contributed to the movement.
Liquidations confirm the return of leverage
This reversal triggered the forced closing of multiple positions. THE data report $107 million in bitcoin liquidations. They are divided between 57 million short positions and 50 million long positions.
Across the entire crypto market, nearly $300 million in positions have been liquidated. CryptoReviewing for its part indicates 465 million over twenty-four hours. This difference may result from the exchanges recorded, the period observed and the updating of the data.
Open interest has resumed its rise, indicating that traders are rapidly rebuilding their leveraged positions. At the same time, Coinbase’s premium has become positive again. Buyers from the United States then pay slightly more than those on other platforms.
This improvement was not enough to restore the bullish momentum. Spot demand remains weaker than activity on futures contracts. Thus, the market depends mainly on leverage, which increases its exposure to liquidations.
Bitcoin will first have to sustainably return to the $80,000 threshold, despite the extreme volatility, to neutralize the recent rejection. On the other hand, a break in the range between 75,000 and 78,500 dollars would consolidate the risk of an accentuated correction. These thresholds remain surveillance zones, and not guaranteed objectives.
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