Bitcoin Futures Market Signals Local Bottom After Major Long Position Liquidations

The latest analysis from CryptoQuant, reported by COINOTAG on October 4, reveals a potential stabilization point in the Bitcoin futures market following substantial long position liquidations. Despite prevailing bearish sentiment and indicators suggesting potential declines, the observed liquidation levels imply a reduction in selling pressure. Notably, during price downturns, the volume of purchased contracts frequently diminishes due to liquidations, thereby alleviating market selling stress. On October 1, a significant event unfolded with over 4,000 BTC long positions liquidated, marking it as the second notable liquidation of 2024 according to CryptoQuant analytics. Historically, these pronounced liquidation events tend to result in local market bottoms, creating opportunities for a brief market rebound. Currently, Bitcoin prices are expected to hover within the existing range, with close monitoring required to assess the strength of buying activities potentially leading an upward trend reversal.