13.6K BTC flush resets leverage – But Bitcoin’s rally to $82k has THIS hurdle

The probability that the Federal target rate could be bumped up by 25 bps to 375-400 bps was increasing by the day. The FedWatch tool showed a probability of a rate hike at 87.3%.

This meant that the chances of a bearish Bitcoin [BTC] price reaction are also higher. In a CryptoQuant analysis, XWIN Japan pointed out that BTC was between persistent, long-term buyers and short-term caution.

The short-term trends could flip bearishly for Bitcoin once again, especially if the caution is given reason to blossom into panic.

Bitcoin retraces into key demand zone at $76k

Friday’s U.S. CPI report introduced high short-term volatility and $685.5 million in liquidations across the crypto market for the day. The past four trading days have seen outflows from Bitcoin spot ETFs.

Binance BTC reserves were at a 2-year high, and the Coinbase Premium Index has slipped into negative territory again. For a brief while towards the end of August, and again at the start of September, an uptick in U.S.-based investor demand seemed to signal market confidence.

Despite the doubt introduced among long-term holders, Bitcoin was steadily climbing towards the key $82k resistance, and this signal gave bulls some hope.