Bitcoin has crashed below the $90K support today, reaching fresh lows at $88,000. Will the BTC dip continue, or is a rebound likely from here?
After a massive overnight crash, the crypto market has seen $881 million in liquidations, with Bitcoin alone suffering $272 million in liquidations and Ethereum nearing $200 million.
Long-position liquidations total $809.24 million, while short liquidations amount to $72.04 million. Following the crash, Bitcoin hit a new 30-day low of $88,600. With a massive supply wave, is Bitcoin destined to fall below the $85,000 mark? Let’s explore.
Bitcoin Hits $88,600: What’s Next?
In the 4-hour price chart, Bitcoin has broken under the 23.6% Fibonacci level, as warned in our previous analysis. With this downfall, Bitcoin has dipped below the critical support of $90,000.
With the short-term price reversal, the current market price of Bitcoin remains at $89,200. In the daily chart, the overall downfall accounted for an 8.9% drop last night. This has brought Bitcoin to its lowest daily closing price since November 18, 2024.
Trading Frenzy: Bulls Jump In Despite Market Crash
With the massive crash in Bitcoin, optimistic traders have initiated a buy-the-dip frenzy over the past 24 hours. On Binance, the biggest centralized crypto exchange, the long-to-short ratio based on accounts has risen to an astronomical figure of 2.88.
This highlights that 74% of accounts holding long positions are hoping for a bullish turnaround. Meanwhile, the funding rate over Binance remains at 0.0073%.
Currently, Bitcoin’s open interest remains at nearly $60.05 billion, highlighting strong sentiment. Overall, the long-to-short ratio based on all exchanges remains at 0.944, while the options volume has risen to $4.07 billion. Bitcoin’s option open interest has risen by 3.16% to $32.60 billion.
Bitcoin Network Activity Drops to New Lows!
However, the Bitcoin network has taken a significant hit. As per Ali Martinez, a crypto analyst, the number of new Bitcoin addresses created daily has dropped to 240,534.
This marks the lowest number of new addresses created since July 2024. This might suggest a consolidation phase coming for Bitcoin.
Along with the declining number of new users, the number of active users on the Bitcoin network has reached a significant low. Currently, it is down at 681.62K active addresses, marking the lowest since October 18, 2024.
Critical Price Levels: Will Bitcoin Reboud $90K?
Despite the short-term optimism among crypto traders, the declining activity over the network warns of a potential consolidation or a prolonged correction phase. As per the price analysis, the $90,000 level remains a critical crossroad for Bitcoin.
Hence, a closing under this could result in a quick revisit to the $86,707 support level. Conversely, a bullish comeback will face immediate resistance at the 23.60% Fibonacci at $94,393.
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.
