Bitcoin briefly reclaimed $83,000 on Friday after plunging to a month-to-date low of $80,308 on Thursday, pushing its market cap back to $1.66 trillion. The rebound follows a volatile week marked by more than $700 million in spot bitcoin exchange-traded fund outflows.
Price Action and Market Recovery
The cryptocurrency hit its low of $80,308 just after midday Thursday before reversing course to climb to $81,400 by 2:35 p.m. ET. The price continued rising to $82,500 by Friday morning, then surged above $83,400 within 15 minutes before 8 a.m. By 1:30 p.m. ET, bitcoin was trading near $82,615, up 2.5% over 24 hours.
The price has seesawed around $83,000 resistance throughout the session, as sharp rallies met equally swift sell-offs. This volatility reflects ongoing uncertainty despite the initial recovery.
Liquidations Cool Following Thursday Downturn
Derivatives activity shifted markedly after Thursday's decline. Long liquidations totaled about $70 million across the crypto market compared to $270 million on Thursday, while short liquidations reached $157 million. Total market liquidations fell to $228 million from $1.1 billion approximately 24 hours earlier.
Bitcoin-specific liquidations over the preceding two days showed significant long position closures of approximately $220.17 million against $45.71 million in shorts, a ratio of roughly 4.8 to 1.
ETF Outflows Dampen Institutional Confidence
Spot bitcoin exchange-traded funds have posted net outflows in three of the last four days following sustained inflows from late September into October. Analysts note that the combination of net outflows and declining open interest suggests brief recovery in spot demand was insufficient to absorb selling pressure.
Levels to Watch
For bitcoin to test $85,000 to $87,000, it must first reclaim and hold $82,800 while seeing a measured recovery in open interest and moderating ETF outflows. Failure to hold these levels could result in a drop below $77,000, with potential support zones between $79,700 and $77,000, and deeper support in the $70,500 to $72,900 region.
