The selling pressure over the crypto market escalates, which has dragged the Bitcoin price below $94000 Besides, the liquidations have spiked, which may keep up the bearish momentum over the markets for a while
The crypto market witnessed a surge in selling pressure, which pushed the Bitcoin price below the crucial level of $94,000. This triggered a spike in liquidations, which might sustain the bearish momentum in the markets.
Bitcoin’s short-term downtrend continues as the bulls struggle to maintain the rally above the pivot support. The market sentiment has also declined to 30, indicating a shift towards fear. Currently, the price approaches a critical support zone and a liquidity test, which could drag BTC into a demand area. This cascade is anticipated to begin below the pivot at $93,400.
The crypto markets experienced one of the biggest pullbacks, similar to the one encountered in the first few days of the month. In the past 24 hours, nearly 1,48,643 traders were liquidated, while the total liquidations amounted to about $379.24 million. The BTC price skimmed the lows and liquidated almost 100x longs that were opened since Friday.
As evident in the above liquidation heatmap by Coinglass, sufficient liquidity is mounted on either side of the price. This suggests that the traders are ambivalent about the upcoming price action and wish to harvest liquidity with a small price movement of Bitcoin. Meanwhile, the exchange inflow volume continues to decline, indicating reduced on-chain activity, which is usually caused by waning investor interest and lower network utilization.
Is Bitcoin (BTC) Price Aiming to Reclaim the $90,000 Mark?
In a recent update, it was highlighted that retail demand for Bitcoin is recovering. The 30-day demand, which had earlier dropped to -21%, has now reversed and surged back to neutral. These levels were last observed in 2021, right before the onset of the bull run. Such recoveries have preceded large price movements in recent history, suggesting that a similar price action might unfold soon.
As depicted in the above chart, BTC price has been subjected to strong bearish pressure over the past few days, keeping the token below the 50-day MA. After remaining consolidated within a narrow range, the Bollinger bands have also started to contract, indicating reduced volatility as it reaches multi-month lows. However, the price action that follows the squeeze is expected to be massive.
Hence, Bitcoin price is likely to remain under significant bearish pressure for a while and possibly enter the demand zone. This might lead the price to stick to the lower support band of the Bollinger, which could pave the way for a strong bullish move beyond the recent highs.
