Bitcoin’s recent drop to $93,224 has brought into question whether the market has finally reached its bottom. While the strength of this support will be determined in the next few hours, some indication of demand is being shown by notable changes in the Binance spot order book during the sell-off.
Major bids at $90,000 were shifted up to buy at $93,000 during the drop, indicating that buyers were keen to absorb the selling pressure at higher prices. Further bids were noted closer to $92,000, suggesting that buyers were eager to prevent a steeper sell-off and capitalize on the lower prices. The bid liquidity at these price points is a positive indication of underlying demand.
However, it appears that passive sellers largely dictated the movement into these bid zones during the recent sell-off, using the momentum created by aggressive takers. This dynamic highlights the control that selling parties maintained in the market during the sell-off. It will be crucial to observe whether buyers can regain strength or if this control persists.
On a technical note, Bitcoin is approaching key support levels, with the 100 EMA providing a stronger fallback zone at $87,000, while $92,000 acts as a short-term buffer. To shift the market sentiment and pave the way back towards $100,000, a recovery above $96,000 is crucial. The next few hours will be critical in assessing the strength of the underlying demand.
If buyers defend the $92,000-$93,000 range and volume picks up, it could signal a potential bottom and the start of a recovery. However, if selling pressure continues and these support levels are breached, Bitcoin may be poised for a deeper correction. For now, traders should pay close attention to bid levels and trading volume, as these factors will provide clearer direction on Bitcoin’s next move. While there is cause for optimism, caution remains paramount in such volatile times.
