According to Woofun AI, Bitcoin has recovered from its lows following a violent leveraged liquidation storm totaling $820.84 million, with the market now awaiting key macroeconomic data to determine its next direction.
This cleansing event, which affected 170,649 investors and was confirmed by CoinGlass statistics, fully exposed the fragility of highly leveraged long positions during price volatility while setting the stage for complex future market dynamics.
On October 12, Bitcoin's price briefly fell to around $81,000 before rebounding to $83,635, with this sharp swing directly triggering massive forced liquidations.
Data compiled by Woofun AI shows that long positions accounted for 84% of the total 24-hour liquidations, amounting to $689.11 million, clearly revealing how quickly concentrated bullish bets collapse when trends reverse.
The largest single liquidation occurred on Binance with a BTCUSDT contract worth $9.65 million, which was forcibly closed at a price of $81,772.75.
Notably, Binance alone handled 50.6% of all liquidation transactions, demonstrating the liquidity dominance of top-tier exchanges during extreme market conditions.
In terms of asset distribution, Bitcoin itself saw $194.28 million in liquidations, with 73.8% coming from long positions; Ethereum followed closely with $183.55 million in liquidations.
Other altcoins also suffered heavy losses: Ethereum is currently trading at $2,528, down 6.3% over the past week; XRP is priced at $1.37, down 2.25% within 24 hours.
However, market sentiment has shown a significant short-term reversal. In the past 4 hours, out of $73.37 million in liquidations, $66.39 million came from short positions, accounting for over 90%, indicating that the current rebound is partly driven by a short squeeze rather than fresh buying pressure.
Meanwhile, trading volume surged 92% to $30.52 billion, further amplifying market volatility.
Beyond the micro trading structure, macroeconomic capital flows and inflation expectations are creating deeper pressure. Between October 5 and October 9, U.S. spot Bitcoin ETFs experienced approximately $679 million in net outflows, equivalent to nearly 8,000 Bitcoin being withdrawn, with October 7 being the worst day at 5,670 Bitcoin in single-day outflows.
On October 12, another $65.4 million flowed out, all from BlackRock's IBIT product.
This sustained capital withdrawal reflects a temporary weakening of institutional demand, though it does not equate to holders directly selling the underlying assets.
At the same time, inflation pressure remains severe. Oil is currently trading at approximately $93.50 per barrel, August CPI rose 3.4% year-over-year, and rising U.S. Treasury yields have combined to reduce the relative appeal of yield-free assets like Bitcoin.
Prediction markets on Polymarket show that analysts expect the Federal Reserve to hold rates steady in October, but the probability of a rate hike in December is as high as 76%.
This monetary policy uncertainty directly affects the valuation logic for risk assets.
From a technical perspective, Bitcoin's price is currently holding above the $80,660 support level. If the daily closing price falls below this level, the next key support would shift down to the $80,000 round number.
On the upside, $84,000 is the first obstacle, while $87,145 represents the critical resistance level that twice blocked price advances in late September.
Only a decisive break above this resistance can be considered a genuine signal of market recovery.
The next decisive moment lies in the CPI data scheduled for release on October 14 and the PPI data on October 15. If inflation data comes in moderate, Bitcoin could rebound toward $87,145; conversely, if inflation exceeds expectations, it could force the Federal Reserve toward tighter policy, potentially triggering a new wave of liquidations below $80,660.
Until key levels are broken, the current rebound should be viewed as only a temporary pause.
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