Quick Takeaways:
- Bitcoin dropped below $90,000. It is currently trading close to $89,200.
- Market signals indicate downward pressure.
- Liquidations surpassed $167M, primarily originating from positions.
Downward Momentum Drives Bitcoin Below Crucial Support Level
Bitcoin dipped beneath the $90,000 threshold today, continuing a week of declines. The value currently lingers around $89,200 as sellers stay dominant.
This shift follows a series of liquidations and deteriorating technical indicators across key charts.
Market liquidity continues to be limited. Traders persist in reducing bullish positions following multiple unsuccessful efforts to push prices upward.
Technical Indicators Signal Ongoing Downtrend
TradingView information indicates that Bitcoin is creating a pattern of decreasing peaks and troughs. This formation validates a trend and reflects weak market confidence.
RSI is presently around 41, indicating weakening demand but not reaching an oversold level. The MACD continues to be strongly negative, suggesting momentum has not returned to the buyers. These indicators suggest limited support unless new demand enters the market soon.
Analysts Eye Support at $87,800
Popular market analyst Crypto Tony highlighted the bearish momentum in his latest update. He noted that Bitcoin continues to trade below critical resistance levels.
Take profit off the short is $87,800, he said. He pointed to chart inefficiencies that could attract prices toward that level.
Tony added that buyers need to reclaim strong resistance before any bullish setup becomes valid.
“A safe loan would only be considered if we flip $91,800 into support,” he explained. “For now, we have a lower low, so this is bearish.”The current structure supports his outlook, with no clear reversal patterns appearing yet.
Leverage Shakeout Increases Strain
Liquidation figures reveal the extent to which leverage intensified today’s drop. Over $167 million worth of BTC positions were closed out in 24 hours.
Long bets incurred $146 million in losses, indicating that buyers were surprised by the decline. Short sellers experienced $21 million in liquidations, underscoring the robustness of the downward trend.
Compulsory liquidations keep intensifying the momentum, increasing volatility, in a market that is already unstable.
Market Stays Substantial Despite the Decline
Although there was panic, Bitcoin’s overall fundamentals stayed strong. Market capitalization remains close to $1.78 trillion.
Trading volume hit $60 billion in the past 24 hours, indicating active involvement rather than a mass exit by investors.
Analysts now watch the $87,800 to $88,500 region closely. A strong defense there could stabilize price action. A break below may open the door to deeper inefficiency zones before any meaningful recovery attempt.