Bitcoin staged a recovery, gaining over $2,000 from a Sunday low of $80,595 to peak just above $83,000 on Monday. The rebound helped dispel fears of a widely anticipated "Black Monday" market plunge, though the asset quickly lost momentum after breaching the $83,000 resistance level.
By early afternoon, bitcoin traded near $81,900, up about 1% on the session, with its market capitalization holding above $1.64 trillion. The near-flat price action kept total cryptocurrency liquidations below $67 million for the session, evenly split between long and short positions. Across the broader crypto market, however, total liquidations reached $334 million, led by $173 million in erased long positions. Additionally, ether saw short liquidations reach $73 million compared to $42 million in longs.
Despite avoiding a steep crash, the price action indicates that a broader monthly rally has not yet materialized. Institutional flows reflect a similarly cautious sentiment, with spot bitcoin exchange-traded funds recording $228.6 million in net outflows last week following a $681 million drawdown the previous week. Total crypto ETFs lost about $593 million last week, led by ether with $320 million in outflows.
Onchain analytics firm Glassnode noted that while heavy selling has abated, new demand from spot and ETF buyers has not stepped in to replace it, with trading volumes slipping below their lower range. Options traders continue purchasing downside protection as implied volatility outpaces realized volatility, while onchain data points to capital shifting toward newer market entrants alongside a 10% decline in network fees and transfer volumes.
