On Thursday, October 8, Bitcoin dipped to $80,400 but held above long-term technical levels, keeping the possibility of an ongoing uptrend alive. Benzinga reported the news.
On Thursday, October 8, Bitcoin dipped to $80,400 but held above long-term technical levels, keeping the possibility of an ongoing uptrend alive.
During the sell-off, $489 million in positions were liquidated across the crypto market within a single hour. The decline affected other cryptocurrencies as well: Ethereum and XRP lost about 6%, while Dogecoin fell by approximately 7%.
Why Bitcoin Fell
On Thursday, 12,267 BTC—valued at around $1.01 billion—were transferred from wallets linked to US authorities. These bitcoins had been confiscated in connection with the hack of the Bitfinex crypto exchange. The coins were moved to new, unlabeled addresses rather than to an exchange, so there are no direct signs of a sale. However, the transfer drew market attention, given previous movements of large volumes of cryptocurrency.
Fears of a new strike on Iran. Reports that the US military was allegedly considering strike options prior to the November 3 US midterm elections heightened investor anxiety. Against this backdrop, Brent crude oil prices rose to $105 per barrel. Later, Donald Trump stated that the US would not strike Iran before the election, but markets had already reacted to the risk of escalation.
Expectations of Fed rate hikes. Minutes from the Federal Reserve's September meeting revealed that most officials view another rate hike before the end of the year as a likely scenario. Meanwhile, the yield on 30-year US Treasury bonds climbed to 5.73%—the highest level in 24 years. Higher yields on traditional assets make riskier investments, such as cryptocurrencies, less attractive.
Liquidations exacerbated the drop
The sharp price movement hit traders who had opened leveraged long positions—bets on further Bitcoin growth—particularly hard.
According to Benzinga, over $1 billion in cryptocurrency positions were liquidated within 24 hours, with the vast majority being long positions. When an exchange forcibly closes such trades, it triggers additional selling and can intensify the price decline.
Read also: Bitcoin plunged, triggering nearly $1 billion in liquidations: will we see $80,000?
Key Bitcoin levels to hold for continued growth
Despite the sell-off, the technical outlook has not turned entirely bearish. Bitcoin fell below the 20-day exponential moving average (EMA) at $83,263 but, according to Benzinga, remained above the 50-day, 100-day, and 200-day averages.
A key benchmark for the broader uptrend is the $79,600 area, where the 50-day EMA lies. As long as BTC holds above this level, the potential for a renewed rally remains. However, the drop below $82,500—previously considered a crucial support level—has worsened the short-term outlook.
To stage a recovery, buyers need to push the price back above the $82,500–$83,300 range and establish a foothold there. If Bitcoin loses support at $79,600, the risk of further decline will increase.