Bitcoin

Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="null" text="null" title="null">BTC</a>) circled $67,000 on Oct. 26 after news events sent BTC price tumbling nearly 5%.&nbsp;
<figure><img alt="BTC price nurses 5% dip amid warning Bitcoin can still 'flush' to $60K" src="https://s3.cointelegraph.com/uploads/2024-10/0192c892-8956-7f9e-a9c1-d9bc18861273" title="">
 <figcaption style="text-align: center;">
 BTC/USD 1-hour chart. Source: TradingView
 </figcaption>
</figure>
<h2 id="bitcoin-open-interest-blamed-as-btc-price-wobbles">Bitcoin open interest blamed as BTC price wobbles</h2>
Data from <a data-ct-non-breakable="null" href="https://subscription.cointelegraph.com/?_gl=1*7499wx*_ga*MTQ0MzQ0NzI4Ny4xNzE2MzY1NTA0*_ga_53R24TEEB1*MTcxNjM2NTUwNC4xLjEuMTcxNjM2Njg2MC4wLjAuMA.." rel="noopener noreferrer nofollow" target="null" text="null" title="null">Cointelegraph Markets Pro</a> and <a data-ct-non-breakable="null" href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" rel="noopener noreferrer nofollow" target="null" text="null" title="null">TradingView</a> tracked local lows of $65,530 on Bitstamp into the Oct. 25 daily close.
These came along with fresh geopolitical instability and unsubstantiated reports surrounding illicit use of largest stablecoin Tether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/tether-price-index" rel="noopener noreferrer nofollow" target="null" text="null" title="null">USDT</a>).
While the latter quickly <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/us-government-investigates-tether-report" rel="noopener noreferrer nofollow" target="null" text="null" title="null">brushed off the accusations</a>, which appeared in the Wall Street Journal, conflict between Israel and Iran increased the risk-off mood.
For Bitcoin market observers, however, there was a more important factor in recent BTC price performance: open interest (OI).
“Now most people say that the cause of the drop was because of some US investigation over the USDT stablecoin, which in fact couldn't be further from the truth. Over the last months we had relentless narratives both in top ranges, as well as in bottom ranges, making people become emotional each time they should've made a decision,” popular X account Luca <a data-ct-non-breakable="null" href="https://x.com/MirageMogul/status/1850075515496923146" rel="noopener noreferrer nofollow" target="null" text="null" title="null">responded</a> on X.
<blockquote>
 “In my opinion, the drop wasn't caused by the news. The drop was caused by the high OI, which market makers are trying to flush out before they take the price higher.”
</blockquote>
<figure><img alt="BTC price nurses 5% dip amid warning Bitcoin can still 'flush' to $60K" src="https://s3.cointelegraph.com/uploads/2024-10/0192c88c-80c1-77df-8b4b-681b2ee6dd2d" title="">
 <figcaption style="text-align: center;">
 Bitcoin futures OI 1-day change. Source: Glassnode
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Data from onchain analytics firm <a data-ct-non-breakable="null" href="https://studio.glassnode.com/workbench/btc-futures-oi-1-day-change?zoom=all" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Glassnode</a> showed the single-day OI decrease on Oct. 25 as the largest since August.
“Blows my mind that Bitcoin still trades like a risk asset.&nbsp; Bitcoin will trade like Gold in these events one day,” Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, <a data-ct-non-breakable="null" href="https://x.com/caprioleio/status/1849961616546333100" rel="noopener noreferrer nofollow" target="null" text="null" title="null">commented</a>.
<blockquote>
 “On the plus side, 10000 BTC Open Interest wiped in minutes, we are now back at the same level of OI as when Bitcoin was trading at $59K.”
</blockquote>
As Cointelegraph reported, OI had previously reached <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-open-interest-exceeds-40-billion-as-brushes-almost-70k" rel="noopener noreferrer nofollow" target="null" text="null" title="null">record highs of over $40 billion</a> as BTC/USD sought a rematch with $70,000.
<h2 id="60-000-liquidity-flush-next">$60,000 liquidity “flush” next?</h2>
Continuing, Luca joined those anticipating a fresh drop toward significant psychological support at $60,000.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-analyst-100k-btc-price-february-completely-within-reason" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Bitcoin analyst: $100K BTC price by February 'completely within reason'</a>
“If we look on the Liquidation-Heatmap, we can clearly observe how bulls tried to catch the local bottom this whole week, failing each time, as there were highly leveraged positions,” the X post continued, referring to exchange order book liquidity.&nbsp;
<blockquote>
 “Now it is happening again, with a MASSIVE pile of longs sitting just under 65K, which is also a very important support level. Lose that, and the next support range at 60K gets exposed.”
</blockquote>
<figure><img alt="BTC price nurses 5% dip amid warning Bitcoin can still 'flush' to $60K" src="https://s3.cointelegraph.com/uploads/2024-10/0192c88d-7cf0-75c0-8831-7783eaa7ae46" title="">
 <figcaption style="text-align: center;">
 BTC liquidation heatmap. Source: CoinGlass
 </figcaption>
</figure>
Monitoring resource <a data-ct-non-breakable="null" href="https://www.coinglass.com/pro/futures/LiquidationHeatMap" rel="noopener noreferrer nofollow" target="null" text="null" title="null">CoinGlass</a> showed bid liquidity stacked below spot price toward $61,500.
“Now that is what I personally think it's going to happen, we will most likely see another flush to 60K, before we can call for any local-bottoms,” Luca concluded.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

BTC price nurses 5% dip amid warning Bitcoin can still 'flush' to $60K

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