Bitcoin snapped back above a closely watched support zone on October 9 after sellers failed to extend a break below it a day earlier. The bounce followed a forced-liquidation wave tied to a $1.484 billion transfer of government-held coins to Coinbase Prime, while spot ETFs kept bleeding cash.
Sellers fail to hold the breakdown
Bitcoin broke above a swing area between $81,517 and $82,833 on September 21, and buyers held support near the top of that range until October 8. That day, sellers pushed the price back into the zone and then below its $81,517 floor, opening the door to more downside.
But the slide stalled just above $80,000, near the September 20 low of $80,106, and buyers took back control. By October 9, bitcoin had recovered above the swing-area high at $82,833, though it still needs to clear the falling 100-hour moving average at $83,963 and the 200-hour average at $84,522 to strengthen the bullish case.
A $1.484 billion transfer triggered forced selling
The breakdown traces to a specific catalyst: over three days, U.S. authorities moved 17,733 BTC, worth $1.484 billion, to Coinbase Prime, adding a supply overhang. That transfer triggered $859.17 million in forced long-position liquidations across derivatives markets. Liquidation totals for the day reached $1.06 billion across 174,244 traders, with longs accounting for 86% of the losses. Bitcoin itself bounced off a local October low of $80,420 as the selling pressure eased.
ETF outflows add to the headwind
Spot bitcoin ETFs compounded the move, shedding $484.9 million on October 7, their worst single day since June. Analysts at Charlie Quant Lab pointed to on-chain data showing the strongest support near $77,000, where a notable cluster of supply was bought, while Bitwise Europe estimated newer investors' average cost basis sits closer to $74,000.
Staying above $82,833 keeps the recovery alive; a break back below $81,517 would hand control back to sellers in the technical area that has defined bitcoin's bias coming into the week.
Sources: investingLive, Decrypt, U.Today
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