Health

Bitfinex: Bitcoin experiences a healthy pullback, but the outlook remains unclear

ChainCatcher news, Bitfinex Alpha's latest report states that Bitcoin has fallen 10% this week, primarily due to large-scale selling in the spot market and broader market liquidations of leveraged positions. After reaching a local high of $66,587 on September 27, the price of Bitcoin plummeted, especially after breaking below the critical level of $65,200, triggering a series of long liquidations that drove Bitcoin down to $60,000.In fact, last week's selling in the spot market was exacerbated by the escalating geopolitical tensions between Iran and Israel, which intensified de-risking and led to long liquidations amounting to $450 million on October 1. With Bitcoin experiencing its first four consecutive days of decline since early August, the market underwent a healthy correction, with open interest dropping from over $35 billion to $31.8 billion. The decrease in open interest indicates that market conditions are relatively stable, and the risk of sudden price fluctuations is now lower.On October 4, as labor market data improved, Bitcoin rebounded to $62,500 and briefly rose to $64,027 during trading on October 7, when spot buying enthusiasm picked up. However, it is still too early to draw conclusions about the short-term market direction. Several altcoins also exhibited significant volatility, with large-cap assets like XRP and APT experiencing fluctuations between 15-20%. As the market remains in a passive state, clues to the future direction of BTC and the overall market may lie in any positioning during the early trading sessions of this week, especially in the U.S.
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