Amid the crypto market crash, will Bitcoin fall below the $90,000 mark as liquidations surpass $2 billion?
With the recent crash, the total crypto market capitalization has dropped to $3.01 trillion. Among the top losers, Bitcoin and Ethereum face significant losses at crucial levels. Bitcoin hit a 24-hour low of $91,530 but has since bounced back to $94,254.
The bearish sentiment remains extremely strong as sellers dominate. The 24-hour liquidations in the crypto market have surged to $2.24 billion, with bulls taking the brunt of the hit—$1.18 billion.
Bitcoin saw liquidations totaling $410.43 million, while Ethereum led with $609.89 million in liquidations.
As top traders are getting liquidated, market volatility has reached its peak. Given these conditions, will Bitcoin break below the $90,000 support level? Let’s analyze.
Bitcoin Analysis Points Downside Risk to $86k
In the daily chart, BTC’s price action registers four consecutive bearish candles. This accounts for a downfall of nearly 12% from the previous day.
Despite this pullback, BTC remains above the local support trendline. Additionally, the bulls maintain dominance above the lower band of the Supertrend Indicator, indicating minor support at lower levels. However, the intraday pullback of 3.62% has broken below the lower Bollinger band.
This suggests a major shift in BTC’s price trend, signaling a bearish continuation. According to price action analysis, a breakdown of the local support trendline would likely push Bitcoin to the next support level at $86,707.
Funding Rates Crash as Bearish Speculations Surge
With the significant correction in Bitcoin’s price, open interest has dropped to $60.61 billion, a decrease of 5.75%.
With the drop in the open interest, the long-to-short ratio over the past 24 hours has dropped to 0.9253. Following the downfall, the funding rate recently dropped to nearly 0%, reflecting low confidence among the bullish traders. Amid the lower price rejection, the funding rate remains at 0.0006%.
Hence, speculations anticipate further corrections in Bitcoin prices with the overall volatility.
On-Chain Data Hints at Extended Crash
As the pullback continues, global in-and-out-of-the-money data shows that 13.10% of Bitcoin’s supply has entered the “out-of-the-money” zone. This represents 2.6 million BTC worth $244.05 billion.
Currently, the out-of-the-money zone stretches from $69,360 to $95,879, holding 2.24 million BTC.
If the broader market continues to remain volatile, the lower limit of the current zone hints at a pullback to nearly $70,000.
In a nutshell, Bitcoin’s current price action signals heightened bearish pressure with the risk of breaking below the $90,000 support level. If sellers maintain dominance and the local support trendline fails, BTC could test the next critical level at $86,707.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
