Bitcoin rebounded on Monday after touching $80,595 on Sunday, but its rally quickly lost strength. The price briefly exceeded $83,000 before falling back below $82,000. The move comes as investors watch for capital outflows from U.S. ETFs and the absence of new buyers. Despite the lull in sales, several indicators highlight a still fragile market, while operators remain cautious about downside risks.
In brief
- Bitcoin rebounds above $83,000 before falling below $82,000.
- US Bitcoin ETFs see $228.6 million in net outflows for the week.
- Crypto ETFs lost around $593 million, including $320 million for ether-linked funds.
- Glassnode notes a drop in selling pressure, but also the absence of new buyers.
- The threshold of $83,000 remains decisive to confirm a lasting recovery of the market.
Bitcoin rebounds, but stuck below $83,000
On Monday, the market avoided the crash feared by some observers, nicknamed “Black Monday”. After intense pressure from sellers, bitcoin has rallied more than $2,000 since its low of $80,595 reached on Sunday. This progression allowed the price to temporarily cross $83,000. However, buyers failed to maintain this momentum throughout the session.
Daily charts show that resistance at $83,000 quickly stalled the advance. After finding initial support above $82,500, the price attempted a new breakthrough towards this threshold. This attempt, observed around 5:35 a.m. US East Coast time, failed. The price then fell as low as $82,069 before briefly rebounding above $82,500.
The rest of the session confirmed the market’s difficulties in extending this increase. The variations multiplied around $82,000, without allowing any further lasting progression. As of 1:20 p.m. Eastern Time, the price of bitcoin was trading at $81,926, up about 1% on the day. Its market capitalization then exceeded $1,640 billion, despite the decline recorded since its intraday peak.
Liquidations remain limited despite volatility
The price fluctuations did not cause a massive wave of liquidations in the bitcoin market. Their total amount remained below $67 million during the period observed. According to Coinglass datathe platforms liquidated nearly $34 million in long positions. Short positions, for their part, represented a little less than $33 million.
This almost balanced distribution shows that both categories of traders have been affected by market movements. Investors who were betting on an increase lost their positions when prices fell. Conversely, some traders who were betting on a decline were liquidated during the rebound. These figures reflect the effects of rapid variations, without alone indicating the direction the market will take.
Across all cryptocurrencies, liquidations reached $334 million. Long positions accounted for $173 million of that total. Ether, however, followed a different trend than bitcoin. Liquidations of short positions on ETH reached $73 million, compared to $42 million for long positions. This difference highlights that price movements have not affected all major digital assets equally.
ETF outflows weigh on bitcoin
Cash exchange-traded fund flows continue to reflect caution among institutional investors. US ETFs linked to bitcoin have recorded $228.6 million in net outflows last week. This figure follows a previous week marked by $681 million in withdrawals. Despite the slowdown in outflows, flows remain negative and have not yet shown a marked return in demand.
All crypto ETFs also suffered significant withdrawals over the same period. Funds lost around $593 million, while ether-related products saw $320 million in outflows. This data shows that selling pressures go beyond the bitcoin market alone. They also demonstrate continued investor caution regarding digital assets, while the recent rebound has not yet led to a clear resumption of capital inflows.
This situation limits the possibilities of a sustainable recovery in the short term. When ETFs experience net outflows, they do not provide the buying support expected from some of the institutional market. Lower withdrawals may reduce selling pressure, but it does not guarantee a return of purchases. To continue its progress, the market will therefore have to show clearer signs of demand, beyond a simple slowdown in sales.
Glassnode observes still insufficient demand
L’Glassnode on-chain analysis confirms the difficulties encountered by the market. The company is seeing an easing of the massive sales that accompanied the decline in early October. However, buyers are not yet taking over in any significant way. Cash investors and ETF buyers remain sparse, while ETF trading volumes fall below their usual low range.
Options markets also show that traders continue to hedge against a possible decline. Implied volatility exceeds realized volatility, reflecting a persistent demand for protection against future fluctuations. At the same time, on-chain data signals a transfer of capital to new market entrants. The move comes as network fees and transfer volumes have fallen by around 10%.
Glassnode also notes a slowdown in profit taking after the massive sales phase. This development accompanies the recent stabilization of prices, but it is not enough to confirm the formation of a lasting floor. The market must still find more solid demand to support further progress. In the coming sessions, the ability of bitcoin to defend the $82,000 zone and cross $83,000 again will therefore remain an important element to monitor.
Monday’s rebound took the market away from the low point of $80,595, without erasing the signs of caution. As long as ETFs experience net outflows and buyers remain minimally active, the rally may lack support. A sustained return above $83,000 would strengthen the recovery signal, while further weakening would expose the price to increased selling pressure. The next institutional flows and the evolution of demand will make it possible to better measure the solidity of the market.
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