Bitcoin pushed to $84,199 on Sunday as buyers targeted a cluster of overhead short liquidations. The $84k-$85k zone is now the largest distribution zone to watch, according to AMBCrypto.
On Sunday, the 11th of October, Bitcoin bounced 1.68% to a local high of $84,199. The $84.5k local resistance was not tested.
Short squeeze and buy wall behind Sunday's move
Across the crypto market, $208.64 million in liquidations hit traders over 24 hours, and $148.79 million of them were short positions. Bitcoin alone saw $50.86 million in liquidations, with $42.69 million (83.9%) from shorts.
The price pushed up toward the cluster of short liquidations around $84k before receding, in what looked like a short squeeze. Crypto analyst Maartunn observed on X that the bid/ask ratio briefly jumped to 0.3, showing strong buying pressure during the move.
Two clusters to watch
Analyst Darkfost wrote that at $83k, 53% of the wealth invested in Bitcoin was above the market price. Buying at that level would leave a buyer better off than just over half of BTC investors.
The $84k-$85k zone is the largest distribution zone, and investors are expected to react to it. A break of this level could be a sign that the trend favored the buyers once again.
To the south, the $77k-$79k and $64k-$65k areas are key support zones to watch.
Young supply index comparable to early-stage recoveries
The Bitcoin Young Supply Index has risen from 1.4 to 13.2 since June, as prices rose from $59k to $84k. Higher readings point to a stronger shift toward younger supply, a sign of new money entering the ecosystem.
The reading remains relatively low but is comparable to the 2015 and 2019 early-stage market recoveries. Analyst Joao Wedson used Realized Cap Impulse scores to place the market in an accumulation-to-neutral zone, rather than a bull run underway.
Source: AMBCrypto
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