Bitcoin trends below $105K, and with trading volumes back to $3.68 billion, the highest volume level since March. Analyst Arab Chain concluded that this indicates that some “institutional” investors may be attempting to re-enter the market during a re-accumulation phase after a recent price decline.
On October 10, the price dip due to rising U.S.-China tariffs caused Bitcoin price to decline sharply from the $122K level to the $101K range, causing a liquidation of approximately $19B of leveraged positions bullish towards Bitcoin price above $100K. Following this, Bitcoin price climbed briefly above $116K before falling again, leading to an additional $1.1B in liquidation soon thereafter.
While holding above this support zone will likely help maintain the relative uptrend, historical “Uptober” data typically supports a price rally at the end of the month, and price recovery this month seems even more true as exchange reserves continue to reflect a steadily decreasing trend. While showing a year-on-year 58% return, it seems market buyers of Bitcoin are attempting to hold the excess market structure.