Bitcoin dropped below $93K with $553M in liquidations, mostly from long positions, but steadied at $94K after rebounding slightly. Spot Bitcoin ETFs experienced $435M in outflows, except for BlackRock’s IBIT, which attracted significant inflows.
On Tuesday, Bitcoin saw a sharp sell-off, dipping to $93,000 before recovering to trade at $94,408. Over the past 24 hours, the cryptocurrency declined by 5.1%, while liquidations across the crypto market totaled $553 million, with $415 million from long positions. Bitcoin’s market cap fell by 3.42% to $1.87 trillion, while the total crypto market cap dropped by 2.88% to $3.25 trillion. Trading volume surged by 20.96% to $240.41 billion, with Bitcoin contributing $84.77 billion, marking a 58.59% increase.
Despite the dip, Bitcoin maintains its dominance, with a circulating supply of 19.79 million. Its fully diluted valuation (FDV) is $1.98 trillion, and a volume-to-market-cap ratio of 4.54% highlights active trading.
The sell-off followed Bitcoin’s recent climb above $99,000, fueled by ETF demand and positive macroeconomic factors. However, the correction came as long-term holders sold over 461,000 BTC, and market makers likely drove prices lower to liquidate leveraged positions. Fidelity’s FBTC and ARK Invest’s ARKB ETFs experienced significant outflows of $135 million and $111 million, respectively, while BlackRock’s IBIT saw inflows of $268 million. MicroStrategy boosted market sentiment with its largest-ever Bitcoin purchase, adding 55,500 BTC worth $5.4 billion.
What’s Next for Bitcoin?
Key support levels are $88,000 and $90,000, with the potential for a deeper correction toward $80,000, reflecting historical bull-market trends. Resistance at $95,000 could signal a rally toward $98,000 if breached.
The RSI is at 76.23, indicating overbought conditions, down from its peak of 80. Moving averages suggest caution, with the 9-day average at $95,251, slightly above the current price, and the 21-day average at $88,953 providing medium-term support. A bearish crossover points to short-term consolidation.
Despite bearish pressure, analysts remain optimistic about Bitcoin’s year-end potential. Polymarket data suggests a 72% probability of Bitcoin reaching $100,000 by Christmas. A rebound above $95,000 could trigger $772 million in short liquidations, potentially driving further gains.
