Bitcoin has bounced 2.9% to $83.3K in just 4 hours as of Monday, October 12, recovering from an earlier dip to $81K. According to AMBCrypto, this latest move comes after the cryptocurrency's 1.68% bounce to $84,199 on Sunday, October 11, though the $84.5k local resistance was not tested during the previous rally. The price pushed up toward the cluster of short liquidations around $84k before receding, with $50.86 million in liquidations and $42.69 million (83.9%) worth of short positions taken out. Crypto analyst Maartunn observed the bid/ask ratio briefly jumped to 0.3 to show strong buying pressure during the price move into the short liquidations overhead.
Despite the recent bounce, net taker volume remains negative throughout October, according to crypto analyst Maartunn. This metric tracks aggressive market order taker volume, since takers tend to dictate trend direction. Using the 30-day moving average to sort out which party is in control, the analyst found that net selling has been predominant throughout October, helping explain the losses BTC faced the previous week when it fell from $87K to $80.4K. Bitcoin traders and investors should be wary of further price decline as these bearish indicators persist. The net taker volume was negative once again, suggesting that aggressive selling continues to outweigh buying pressure.
The TIPS bond ETF trends have led Bitcoin trends in the past, and the TIPS ETF has been falling in recent months, as noted by crypto intelligence platform Alphractal. The BlackRock's iShares TIPS Bond ETF product invests in inflation-protected public obligations of the U.S. Treasury with a remaining maturity of less than five years, and while the TIPS principal adjusts upward with rising CPI and inflation, the ETFs are still subject to market interest rates. Historical correlation does not guarantee future price moves, but it was a warning that Bitcoin might be poised for another bearish price leg. In the past, the TIPS ETF has started trending higher before Bitcoin, and its bearish direction change has been followed by a Bitcoin downtrend.
The Bitcoin mining scene faces mounting pressure from electricity production costs highlighting the stark difference between newer and older mining equipment. Crypto analyst Axel Adler Jr. highlighted the stark difference between the Bitmain Antminer S19 and the S21 for mining Bitcoin, with the estimate not including cooling infrastructure, repairs, or other overhead costs. A decline in Bitcoin prices could further strain the profitability of old models, as the network fee was only 0.64% of the share of the miner fee revenue, meaning their revenue is almost solely tied to mining rewards. Miners must balance overhead against investment into new equipment to maintain profitability, creating additional pressure on the network's older mining rigs.
Bitcoin is trading at $83,313 as of Monday's session, showing resilience as the cryptocurrency market attempts to stabilise following recent selling pressure. The cryptocurrency has gained 0.42% in the past 24 hours and Ethereum is up 2.09% to trade around $2,551, according to The Economic Times. Among major altcoins, BNB, XRP, Solana, Tron, Hyperliquid, Dogecoin and Cardano gained up to 2.39%. However, over the last week, Bitcoin was down 2.97% and Ethereum was down 6.11%, with some altcoins correcting up to 9.52%. Across the crypto market, the past 24 hours saw $208.64 million in liquidations, with $148.79 million of them positioned short.
