Bitcoin's rally near $87,000 shows signs of losing momentum, shifting to long risk
Bitcoin's recent rally, which saw it climb to an eight-month high near $87,400 last week, is showing signs of weakening momentum, with market structure flipping from short squeeze to long risk. CryptoQuant data indicates spot demand contracted by approximately 170,000 BTC over the past 30 days, and US exchange-traded fund daily inflows declined by 97% last week, falling from around $1 billion to $31 million by September 28. Short-term traders' unrealized profit margin has reached 33%, the highest since December 2024, leading to significant profit-taking, including 25,700 BTC on September 22, the largest single-day total of 2026. Alphractal data reveals that the largest unliquidated positions are now concentrated on the long side, increasing the risk of forced selling if prices decline. Key support levels are around $80,000 (365-day moving average), $71,000 (200-day moving average), and $67,000 (traders' realized price).
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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