Bitcoin Price Briefly Nears $82K, but Bears Warn of a Drop Toward $76K

Strong GDP Growth Drives Temporary Rally

Bitcoin rallied Thursday aft caller information from the U.S. Bureau of Economic Analysis showed U.S. gross home merchandise (GDP) grew astatine an yearly complaint of 3.4% successful the 3rd quarter. The starring cryptocurrency whitethorn person besides benefited from investors fleeing AI stocks aft Google reported a monolithic net miss Thursday morning, rapidly wiping retired implicit $500 billion from the marketplace headdress of genitor institution Alphabet.

The rally reversed losses the cryptocurrency incurred aft the Federal Open Market Committee (FOMC) voted to keep involvement rates unchanged up of the U.S. midterm elections.

Bitstamp information showed bitcoin’s terms jumped from conscionable nether $79,900 to a league precocious of $81,888 pursuing the merchandise of the GDP report, which indicated robust U.S. economical maturation implicit the summer. Before the surge, the cryptocurrency had dropped from implicit $81,000 to nether $80,000 aft the FOMC, arsenic expected, voted to permission rates unchanged.

Between midnight EST and 9:40 a.m., bitcoin’s terms fluctuated astir $80,000, with $80,500 acting arsenic a absorption level. The GDP information provided a boost that pushed the integer currency up astir $2,000 successful conscionable implicit 2 hours. At 1:40 p.m., bitcoin traded somewhat beneath $81,000, representing a regular summation of 0.5%.

Although the abrupt rally lifted bitcoin’s marketplace capitalization from $1.61 trillion to $1.64 trillion, information showed the cryptocurrency was down astir 2% from its October opening terms of astir $83,600.

Price Volatility Triggers Liquidations

In the derivatives market, bitcoin’s volatility sparked a surge successful liquidations of leveraged positions. According to Coinglass data, full bitcoin liquidations approached $99 million, with abbreviated presumption wipes exceeding $52 million. Across the broader cryptocurrency market, $210 cardinal successful agelong positions were liquidated compared with $202 cardinal successful abbreviated positions.

Commenting connected the terms movement, crypto expert Cryptoreviewing noted that important liquidity clusters stay connected some sides of the bid book. In a post connected X, the expert said bitcoin has $2.4 cardinal successful liquidity stacked supra betwixt $81,500 and $84,000, and $2.9 cardinal beneath betwixt $76,000 and $79,500, making the downside the larger people area.

On little timeframes, the expert highlighted cardinal liquidity zones astatine $78,500–$79,600 to the downside and $80,400–$82,000 to the upside arsenic the astir apt levels to beryllium swept next. Turning to whale activity, the expert noted:

“Whales presently person astir $490M bargain orders beneath astatine $75,000-$80,000 and astir $350M supra astatine $80,000-$86,000. So whales privation to bargain immoderate dip we get.”

However, galore traders connected societal media characterized the terms swings arsenic a deliberate “stop-loss sweep” orchestrated by organization players to liquidate precocious agelong and abbreviated positions connected some sides of the trading range. Others highlighted the analyst’s reflection that $2.9 cardinal successful liquidity was concentrated beneath $79,500. Bearish traders argued that this liquidity excavation could gully prices little earlier immoderate sustained recovery, portion bulls maintained that defending the $78,500 enactment level would beryllium captious to preventing a deeper diminution toward $76,000.

While the beingness of $490 cardinal successful whale bargain orders beneath $80,000 offered short-term reassurance, immoderate users expressed skepticism, noting that ample bid publication bid walls are often pulled oregon relocated earlier orders execute.

Consequently, immoderate experienced traders are urging retail participants to trim leverage oregon instrumentality to spot accumulation until bitcoin decisively reclaims cardinal absorption levels similar $80,400.