According to TechFlow, CryptoQuant analysts said that the liquidation of long positions may have established a local bottom. Although price sentiment remains bearish and technical indicators indicate the possibility of further declines, the liquidation level of long positions in the Bitcoin futures market indicates that selling pressure has eased. During a sharp drop in prices, the number of contracts purchased tends to drop sharply due to liquidation, thereby alleviating the selling pressure in the market.
On October 1, over 4,000 BTC longs were liquidated, the second-largest liquidation event in 2024 according to CryptoQuant data. Typically, these moments of high losses and liquidations form local bottoms, opening up space for short-term recovery. At this point, prices are likely to remain in the current range in the short term, but buying strength will need to be watched to reverse the decline.
