Bitcoin’s price is down below $90,000, wrapping up its consolidation phase and causing epic liquidations in the crypto market. In the last 24 hours, $1.34 billion of liquidations erased 367,500 traders, with the largest individual order at $20.80 million on Binance. The fall comes in the wake of a security incident at Bybit, which saw the exchange lose about $2 billion worth of BTC from its coffers. Uncertainty in the markets and mounting selling pressure have pushed Bitcoin to a low of $88,200, with analysts issuing warnings that additional losses could send BTC to the $85,000 support point. But in the event that sentiment improves, Bitcoin can try to regain the $100,000 level.

KEY LOOKOUTS

• BTC drops to $88,200, a steep 4.89% drop and ending its prolonged consolidation, worrying investors.

• More than $1.34 billion in liquidations erased 367,500 traders, with the biggest single order of $20.80 million on Binance, boosting selling pressure.

• Bybit lost approximately $2 billion in BTC from reserves as a result of a security breach, resulting in increased investor fears and market withdrawals.

• Bearish momentum in Bitcoin persists, with RSI approaching oversold levels. Further decline can test $85,000, and a bounce can test $100,000.

Bitcoin’s sudden drop below $90,000 has caused enormous liquidations, erasing 367,500 traders and a total of $1.34 billion in losses. The downturn in the market comes after a security hack at Bybit that saw a loss of $2 billion in BTC reserves, instilling uncertainty and investor withdrawals. The largest volume liquidation order of $20.80 million happened on Binance, contributing to the selling wave. With Bitcoin’s drop to $88,200 and its RSI close to oversold, experts indicate that BTC may challenge the $85,000 support level if the bearish trend continues. The price, however, can still rebound and recover towards the $100,000 psychological level.

Bitcoin’s price fell below $90,000, initiating $1.34 billion worth of liquidations and eliminating 367,500 traders. A $2 billion BTC loss by Bybit reserves created market uncertainty. If the bearish strength prevails, BTC might challenge $85,000, while a reversal could reach $100,000.

• BTC falls to $88,200, putting an end to its extended consolidation period and causing major market volatility.

• More than $1.34 billion worth of liquidations erased 367,500 traders in 24 hours, with the single biggest order valued at $20.80 million on Binance.

• Bybit lost about $2 billion worth of BTC reserves following a security breach, and this triggered heightened investor withdrawals and market volatility.

• The breach and market anxiety prompted a wide sell-off, driving Bitcoin to lower support levels and enhancing downward momentum.

• The Relative Strength Index (RSI) on the daily chart is 30, which indicates strong bearish momentum and a possible further price drop.

• Experts warn that Bitcoin may test the $85,000 level if the bearish trend persists, fuelling fears of further corrections.

• If Bitcoin recovers, it may retest its $100,000 psychological level, so investor sentiment will be the key to what happens next.

Bitcoin’s recent decline below $90,000 has caused shockwaves in the cryptocurrency space, spawning across-the-board liquidations and jitters among investors. The unexpected dip follows a security hack at Bybit, where up to $2 billion worth of BTC reserves were stolen, leading the majority of users to withdraw their funds. The incident has raised eyebrows regarding the security of centralized exchanges and the need for self-custodial wallets. The cryptocurrency community is paying close attention to how exchanges react to such incidents, as investor sentiment is important in keeping the market stable.

 BITCOIN Daily Price Chart

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The sell-off has also affected traders, with more than $1.34 billion worth of liquidations taking place within 24 hours, hitting 367,500 traders. Market sentiment has been dented, as fear and uncertainty spread after the Bybit incident. Though Bitcoin has experienced similar declines in the past, the situation now accentuates the increasing difficulty of securing digital assets. In the backdrop, talk of decentralized finance (DeFi) and self-custody is gaining traction as investors look for safer options to safeguard their investments.

TECHNICAL ANALYSIS

Bitcoin’s recent price action indicates robust bearish momentum, with the price falling below the important psychological level of $90,000. The collapse of this level precipitated massive liquidations, indicating rising selling pressure. The Relative Strength Index (RSI) on the daily chart has fallen to 30, close to oversold levels, which means that BTC may be in need of a short-term rebound. But the inability to stay above the $94,000 support level indicates that Bitcoin may test lower support levels, with $85,000 becoming a key level to monitor. On the positive side, a bounce above $91,500 might be a sign of a reversal but with stubborn resistance at $94,000 and $100,000 that could cap the upside action. Traders are taking keen interest in volume action and market sentiment to determine if Bitcoin will bounce back into its bullish trend or maintain its downside correction.

FORECAST

Bitcoin’s recent fall below $90,000 is a sign of sustained selling, with prospects of further downward action. The breakdown of the crucial support levels has added bearish momentum, and if BTC cannot hold up above $88,000, it might prolong its correction down to $85,000. Market sentiment is still weak courtesy of the Bybit security breach, which has instilled fear among investors. Also, liquidation figures indicate that investors are selling their positions, which further adds to the negative momentum. If selling persists, Bitcoin could struggle to establish firm support, paving the way for a potential retest of lower levels.

Bitcoin has proven to be resilient in the past in bouncing back from market dips. If investors step in and push BTC above $91,500, it can regain its bullish trend, with a possible retest of the $94,000 resistance level. A break above this range could unleash more gains, with the psychological $100,000 level being the next key resistance. Moreover, if RSI stays in oversold levels for a long time, a relief rally may happen, drawing buyers who seek cheap entry points. Institutional demand and overall market sentiment will be the determining factors for whether Bitcoin will regain its bullish trend.