Key Takeaways
- Bitcoin rebounded past $83,000 on Oct. 19, quelling “Black Monday” fears despite stalling below $82,000.
- Coinglass data noted $334M in total crypto liquidations, while U.S. bitcoin ETFs lost $228.6M last week.
- Glassnode expects muted upside for bitcoin until ETF and spot buyers resume accumulation.
Bitcoin Bounces Above $83K as ‘Black Monday’ Fears Fade
Bitcoin staged a recovery on Monday, gaining over $2,000 to peak just above $83,000 as a widely anticipated “Black Monday” market plunge failed to materialize. The rebound followed a sustained sell-off that dragged the cryptocurrency to a Sunday afternoon low of $80,595.
However, daily price charts show that bitcoin quickly lost momentum after breaching the $83,000 resistance level. The asset initially appeared to find support above $82,500 before making another run at $83,000 around 5:35 a.m. EST. When that attempt stalled, bitcoin tumbled to $82,069 before a brief relief rally pulled it back above $82,500.
A period of heightened volatility followed, with prices swinging around the $82,000 mark. By 1:20 p.m. ET, bitcoin traded at $81,926—up roughly 1% on the session, bringing its market capitalization to above $1.64 trillion.
The near-flat price action helped cap total liquidations for the cryptocurrency below $67 million. Data from Coinglass shows liquidations were nearly evenly split: wiped-out long positions totaled nearly $34 million, while short bets stood just under $33 million. This balanced liquidations pattern played out across most major digital assets, with the notable exception of ether (ETH), where short liquidations reached $73 million compared to $42 million in longs.
Across the broader crypto market, total liquidations reached $334 million, led by $173 million in erased long positions.
While some analysts had warned of potential market fallout coinciding with the 39th anniversary of Black Monday—the infamous stock market crash from 1987—bitcoin’s initial surge undercut those fears. Still, the asset’s familiar range-bound price action offers further evidence that a broader “Uptober” rally has yet to take shape.
ETF Outflows and Glassnode Onchain Analysis Signal Caution
Institutional flows mirror this cautious sentiment. Spot bitcoin exchange-traded fund (ETF) data indicates institutional investors remain net sellers in October. As reported by Bitcoin.com News, U.S. bitcoin ETFs recorded $228.6 million in net outflows last week, following a $681 million drawdown the week prior. Overall, crypto ETFs lost about $593 million last week, led by ether (ETH) with $320 million in outflows.
Onchain analytics firm Glassnode noted that while the heavy selling behind early October’s decline has abated, new demand has not stepped in to replace it. According to Glassnode, spot and ETF buyers remain absent, with ETF trading volumes slipping below their lower range despite narrowing outflows. Meanwhile, options traders continue buying downside protection as implied volatility outpaces realized volatility. Onchain data also highlights capital shifting toward newer market entrants, even as network fees and transfer volumes fell about 10% and profit-taking slowed.
