Bitcoin Dips to $93K and Stabilizes at $94K Amid Liquidation Spike
- Bitcoin dropped to $93K with $553M in liquidations, mostly from long positions.
- Spot Bitcoin ETFs faced $435M in outflows, except BlackRock’s IBIT.
Bitcoin steadied at $94k on Tuesday, rebounding after a sharp sell-off that pushed its price below $93,000 earlier in the day. The cryptocurrency saw a 24-hour decline of 5.1%, with liquidations across the crypto market reaching $553 million, including $415 million in long positions.
Bitcoin is trading at $94,408, and its market cap currently stands at $1.87 trillion, down 3.42% from the previous day. The total crypto market cap dropped by 2.88% to $3.25 trillion. Trading volume surged 20.96% over the past 24 hours to $240.41 billion, with Bitcoin contributing $84.77 billion, representing a 58.59% increase.
Despite the dip, Bitcoin maintains its dominance, supported by its 19.79 million circulating supply. The crypto’s fully diluted valuation (FDV) stands at $1.98 trillion, with a volume-to-market-cap ratio of 4.54%, indicating active trading.
The sell-off follows Bitcoin’s rapid ascent above $99,000 last week, driven by ETF demand and favorable macroeconomic conditions. However, long-term holders offloaded over 461,000 BTC, triggering Monday’s correction. Market makers are suspected of driving prices lower to liquidate leveraged longs. Spot Bitcoin ETFs saw net outflows of $435 million, with Fidelity’s FBTC and ARK Invest’s ARKB losing $135 million and $111 million, respectively.
Conversely, BlackRock’s IBIT attracted $268 million in inflows. MicroStrategy bolstered market confidence with its largest-ever Bitcoin purchase of 55,500 BTC worth $5.4 billion.
What’s Next for BTC?
Bitcoin’s key support levels are $88,000 and $90,000. A deeper correction could test the $80,000 mark, consistent with past bull-market behavior. On the upside, resistance at $95,000 could pave the way for a rally toward $98,000 if breached.
The RSI currently reads 76.23, signaling overbought conditions, declining from its recent peak of 80. Moving averages indicate caution. The 9-day moving average is $95,251, slightly above the current price, while the 21-day average of $88,953 suggests strong medium-term support. The bearish crossover implies continued consolidation in the short term.
Despite bearish momentum, analysts remain optimistic about Bitcoin’s year-end potential. Polymarket data shows a 72% probability of Bitcoin hitting $100,000 before Christmas. A rebound above $95,000 could lead to liquidations of $772 million in short positions, potentially fueling further gains.
Highlighted Crypto News Today
MicroStrategy Acquires 55,500 BTC, Total Holdings Reach 386,700
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
World Bank moves to calm fears of AI taking over education
Share link:In this post: Artificial intelligence has become a mainstream industry, but the extent and nature of its influence is a divisive subject. The World Bank has joined thought leaders and leading entities in admonishing against outrightly rejecting the technology, especially in developing countries. While many have been very inventive in coming up with ways AI could backfire on humanity, the global organization maintains AI has more potential for good,
Sony deepens collaboration with AMD for PlayStation PS5 Pro
Share link:In this post: The partnership is expected to enhance gaming. Both Sony and AMD are focused on machine learning. Technology from this collaboration will extend beyond PlayStation
Polygon rejects proposal to bridge funds into Morpho to drive DeFi growth
Concerns over potential network risks lead Polygon to reject Morpho proposal despite projected $70 million annual yield.
South Korea’s Lawmaker Faces Prison for Hiding Crypto Profits