Bitcoin approached $87,000 on Friday, fueled by a wave of short liquidations that reached $122 million within a single day. The surge pushed BTC to its highest price since September 23, peaking at $86,857 before a modest pullback.
BTC breaks resistance as sellers retreat
BTC/USD touched $86,857 on Bitstamp, supported by momentum from buyers who overcame a consolidated block of sell orders near $85,000. The move marked a significant departure from the rangebound trading that had characterized much of the previous week.
Onchain analytics firm Glassnode attributed the breakout to a thinning of ask liquidity above previous levels, suggesting that remaining sell orders in the order book had been removed. This environment allowed Bitcoin’s price to climb more rapidly, as friction from sellers diminished.
With reduced ask liquidity, upward price movement accelerates as most sell orders appear to have been withdrawn from the market.
CoinGlass heatmap data revealed a cluster of potential liquidations forming above $87,000 after the breakout, indicating fresh risk for traders betting against further gains. Earlier in the week, over $30 million in sell orders were concentrated around $85,700, according to market reports.
As the price approached $86,000, CoinGlass observed that liquidation exposure was increasingly focused at higher price levels, a signal that traders with short positions were vulnerable to continued upward momentum.
Across the entire crypto market, total short liquidations for the 24-hour period climbed to $210 million, underscoring the impact of Bitcoin’s strong move on broader market dynamics.
Spot ETF inflows and trading volume under the spotlight
The $86,000 zone also holds particular importance for investors in US spot Bitcoin exchange-traded funds (ETFs), acting as a key breakeven threshold. Glassnode’s latest market report, The Week Onchain, emphasized that sustained price breakouts accompanied by increased trading volumes and stronger ETF inflows would help confirm a broader BTC uptrend.
ETF daily net flows have slowed since reaching a yearly high of $999 million on September 21. While inflows continued, they did so at a reduced rate. Glassnode noted that a significant uptick in these flows would signal renewed demand among institutional investors.
Funds continue to accumulate Bitcoin, but at a much slower pace than during the peak days. A resurgence in inflows at previous levels would clearly point to revitalized ETF interest.
On October 1, data from Farside Investors reported that US spot Bitcoin ETFs registered net inflows of $102.7 million. The largest fund, BlackRock’s iShares Bitcoin Trust (IBIT), recorded $195 million in inflows, although outflows from other funds limited the aggregate net increase.
Mini dictionary: Glassnode, a blockchain data and analytics firm, provides onchain metrics to assess market activity and investor behavior in cryptocurrencies.
| Metric | Value | Date/Period |
|---|---|---|
| BTC short liquidations | $122 million | Last 24 hours |
| BTC price high | $86,857 | Friday |
| US spot Bitcoin ETF net inflows | $102.7 million | October 1 |
| BlackRock IBIT inflows | $195 million | October 1 |
| Crypto market short liquidations | $210 million | Last 24 hours |
