Bitcoin faced a price correction on October 21, failing to sustain its recent breakout. According to BeInCrypto Markets, the cryptocurrency dropped 0.28% over 24 hours to trade at $82,486. Data from Santiment indicated that open interest had reached $23.4 billion just before the reversal, signaling a significant buildup of leverage in the futures market.
The market volatility resulted in substantial liquidations for long positions. CoinGlass reported that over a four-hour period, long traders accounted for $91.19 million out of $95.22 million in total liquidations. The largest single liquidation involved a Bitcoin long position on Binance worth $11.78 million, which was closed at a price of $83,526.
Analyst Benjamin Cowen noted that the 21st of the month has repeatedly marked local price tops for Bitcoin since July, with the exception of August. Market observers are now monitoring whether the asset can reclaim the $83,700 level to regain bullish momentum. Conversely, a daily close below $80,000 would place average spot ETF and treasury holders at a loss.
Technical analysis from Glassnode identifies the next resistance ceiling for Bitcoin between $85,000 and $87,500, where clusters of sell orders are concentrated. Meanwhile, the True Market Mean, representing the average cost basis for active investors, is currently positioned near $77,600. Traders are watching these levels closely ahead of November 3.
