PakGazette – (BTC), the largest cryptocurrency, finally falls below $90,000, losing $118 billion in capitalization in 12 hours. However, the CryptoQuant verified author does not expect this drop to be much smaller as short-term holders continue to make profits.
Bitcoin (BTC) Price at $88,000: Next (LON:) key level to trace
In the short term, the price of Bitcoin (BTC) could find its local “floor” at $90,000. However, entering the “breathing room” at the $88,000 zone will not surprise pseudonymous cryptocurrency analyst Percival, verified author of CryptoQuant.
The analyst shared this forecast in his latest CryptoQuant QuickTake post.
He stressed that a combination of factors shows that the powerful “selling pressure” of the last days of 2024 extended into the beginning of the new year. Furthermore, he noted that Bitcoin ETF flows decreased, while open interest also recorded a massive drop.
At the same time, short-term Bitcoin holders may not be bothered by the current drop:
Although “the odds favor the floor of $90,000”, the expert recommends all traders to look at $88,000, as this level is of utmost importance for short-term holders.
$700 million liquidated in worst session for bulls
Furthermore, the speaker sees no opportunity for the price of Bitcoin (BTC) to rise further even if it reaches $88,000.
Meanwhile, Bitcoin (BTC) is in the midst of its worst sell-off in three weeks. Net cryptocurrency liquidation volume exceeds $700 million, CoinGlass data shows.
Of this sum, 300 million dollars were wiped out in the last four hours. Bitcoin (BTC) fell to $89,500 but later recovered to $92,500, causing pain to both bulls and bears.
