- Bitcoin has plunged below $90K, hitting a low of $88,000, with traders debating whether it will drop further to $86,707 or rebound.
- While bullish traders are buying the dip, declining network activity and key resistance at $94,393 suggest potential consolidation or prolonged correction.
Bitcoin’s rollercoaster ride continues as the cryptocurrency has dipped below the critical $90K support level, touching fresh lows at $88,000. With traders scrambling to make sense of the situation, the big question remains: will Bitcoin sink further to test the $86,707 support level, or can the bulls regain control for a rebound?
Bitcoin Hits $88,600: What’s Next?
Bitcoin’s sudden 8.9% drop has sent shockwaves through the market. Currently trading around $89,200, Bitcoin has broken below the 23.6% Fibonacci level, signaling potential weakness. This marks the lowest daily closing price since November 2024, leaving traders uncertain about what’s next.
The crypto crash has also led to massive liquidations. A total of $881 million was liquidated across the market, with Bitcoin suffering $272 million in long-position liquidations. Ethereum has also felt the heat, with nearly $200 million in liquidations.
Traders Remain Hopeful: Buy-the-Dip Frenzy
Despite the drop, optimistic traders have jumped in, hoping to turn the tide. On Binance, the long-to-short ratio has surged to 2.88, meaning 74% of traders are betting on a price recovery. Meanwhile, Bitcoin’s open interest remains at $60.05 billion, indicating continued engagement in the market.
However, while bullish traders are optimistic, Bitcoin’s funding rate remains low at 0.0073%, hinting at underlying caution among investors. Additionally, the options volume has climbed to $4.07 billion, showing heightened market activity.
Bitcoin Network Activity Hits Lows
While traders remain divided, the Bitcoin network itself is flashing warning signs. The number of new Bitcoin addresses created daily has plummeted to 240,534—the lowest since July 2024. Likewise, active Bitcoin addresses have dropped to 681.62K, the lowest since October 2024. This decline in network activity could signal an upcoming consolidation phase or even a prolonged bearish trend.
Key Levels to Watch: Will Bitcoin Rebound?
For Bitcoin to recover, it must reclaim the $90,000 mark as a critical support level. Failure to do so could see BTC sliding toward the $86,707 support level. On the flip side, if bulls manage to regain control, Bitcoin could face immediate resistance at the 23.6% Fibonacci level of $94,393.
The coming days will be crucial in determining Bitcoin’s next move. Will the crypto king stabilize, or is there more downside ahead? Traders and investors alike will be closely watching the charts for the next big move.
