Bitcoin (BTC) Tumbles Below $100,000, Triggering $2B Industry-Wide Liquidations

As of Thursday morning, BTC/USD was trading at $97,300, marking an 11% decrease from its all-time high of $109,026.

Bitcoin (BTC) price dropped another 11% on Thursday morning, continuing a two-day decline from all-time highs and sparking industry-wide liquidations exceeding $2 billion.

At last check, BTC/USD was trading at $97,300, down from its all-time high of $109,026. This decline comes amid institutional outflows and technical indicators suggesting a potential further correction.

Meanwhile, the TRUMP coin saw a 10% increase in the last 24 hours, bringing its market cap closer to $4 billion. However, TRUMP lost its third-place ranking among the largest meme coins to PEPE.

The TRUMP coin’s Relative Strength Index (RSI) rose to 48.5, up from 27.8 just two days ago and from a low of 19.8 four days ago. This rapid recovery marks a return of buying pressure after TRUMP was in deeply oversold conditions.

Price analysis

An RSI reading below 30 suggests an asset is oversold and could be due for a rebound, which aligns with the recent price action. Now at 48.5, TRUMP’s RSI is at its highest level in weeks, indicating a shift towards a more neutral stance, though it has not yet entered bullish territory.

RSI is a momentum indicator that measures the speed and magnitude of price movements on a scale from 0 to 100. Readings above 70 suggest overbought conditions and a potential pullback, while readings below 30 indicate oversold conditions and a possible recovery.

With TRUMP’s RSI nearing 50, it signals a balance between buying and selling pressure, and if it continues to rise and crosses 50, it could indicate growing bullish momentum.

Concerns over potential selling pressure arose with the on-chain movement of 49,700 BTC from the 6-12 month spent output age band (SOAB). According to XBTManager, these moves typically precede market turbulence and may impact prices in the coming days.

However, market participants noted that whale addresses have accumulated over 30,000 BTC during the current dip, providing some price support.

Moreover, market sentiment has turned negative for the first time since November 2024, presenting potential buying opportunities for contrarian investors looking to counter the herd mentality, Alphractal’s study suggests.

While short-term technical signals point to further pressure and challenges at lower support levels, the story of institutional adoption remains strong.

This 11% decline fits well within historical norms for bull markets, suggesting a healthy consolidation rather than the start of a significant correction.

A drop to the $90,000 level would provide significant psychological and technical support, still much higher than historical drawdowns.

Participants should monitor ongoing institutional flows and whale accumulation patterns as potential drivers of price recovery.