TechFlow news, CryptoQuant analysts said that the liquidation of long positions may have established a local bottom. Although price sentiment remains bearish and technical indicators suggest further downside potential, the level of long position liquidations in the Bitcoin futures market indicates reduced selling pressure. During sharp price declines, the number of contracts bought tends to drop sharply due to liquidations, thereby alleviating market selling pressure.
On October 1, over 4,000 BTC long contracts were liquidated, the second-largest liquidation event of 2024 according to CryptoQuant data. Typically, such high-loss and high-liquidation moments form local bottoms, creating room for a short-term recovery. Currently, prices may remain range-bound in the near term, but the strength of buying interest will need to be monitored to reverse the downward trend.
