Bitcoin Drops Below $90K, Signs of Recovery Emerge
Key Takeaways
Bitcoin has experienced a significant price drop in recent days. Panic selling led to a 10.77% loss within a week. However, historical data shows that such declines often precede a recovery. Initial signs of increasing buying activity could indicate an imminent trend reversal.
Bitcoin Price Falls Below 90,000 USD
In the past 24 hours, Bitcoin lost another 2.38%, dropping below the 90,000 USD mark for the first time in three months. A total of 79,000 BTC was sold on the spot market, accompanied by 1.7 billion USD in liquidations of derivative contracts. Such sharp declines are often a sign of market cleansing, which can pave the way for a recovery.
Historical Patterns Indicate Recovery
Past price movements show that Bitcoin often experiences a swift rebound after significant declines. A key indicator of this is the STH-SOPR (Spent Output Profit Ratio), which measures whether short-term investors are selling at a profit or loss. When this value falls below the lower Bollinger Band limit, a price increase between 8% and 42% often follows. Currently, Bitcoin is in such a phase.
Increasing Buying Activity as a Positive Signal
Another sign of a potential recovery is the rising number of short position liquidations. In the last four hours, short positions worth 11.59 million USD were closed, while only 663,900 USD in long positions were liquidated. The 17.4:1 ratio indicates that the market is turning against sellers. Additionally, a positive funding rate of 0.0039% signals that long positions are dominating.
Our Assessment
Bitcoin is at a critical juncture. The recent market cleansing could lay the foundation for a recovery. Historical data and current market indicators suggest that a price increase is possible if buying activity continues to rise. Investors should closely monitor market developments and watch for further signs of a potential trend reversal.
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $82,989.00 |
| 24h % | -0.21 % |
| 7d % | -15.73 % |
| 30d % | -18.95 % |
| 60d % | -11.18 % |
| 1y % | 44.47 % |
| Market Cap | $1,643,993,845,672.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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