Bitcoin Dips to $93K and Stabilizes at $94K Amid Liquidation Spike
- Bitcoin dropped to $93K with $553M in liquidations, mostly from long positions.
- Spot Bitcoin ETFs faced $435M in outflows, except BlackRock’s IBIT.
Bitcoin steadied at $94k on Tuesday, rebounding after a sharp sell-off that pushed its price below $93,000 earlier in the day. The cryptocurrency saw a 24-hour decline of 5.1%, with liquidations across the crypto market reaching $553 million, including $415 million in long positions.
Bitcoin is trading at $94,408, and its market cap currently stands at $1.87 trillion, down 3.42% from the previous day. The total crypto market cap dropped by 2.88% to $3.25 trillion. Trading volume surged 20.96% over the past 24 hours to $240.41 billion, with Bitcoin contributing $84.77 billion, representing a 58.59% increase.
Despite the dip, Bitcoin maintains its dominance, supported by its 19.79 million circulating supply. The crypto’s fully diluted valuation (FDV) stands at $1.98 trillion, with a volume-to-market-cap ratio of 4.54%, indicating active trading.
The sell-off follows Bitcoin’s rapid ascent above $99,000 last week, driven by ETF demand and favorable macroeconomic conditions. However, long-term holders offloaded over 461,000 BTC, triggering Monday’s correction. Market makers are suspected of driving prices lower to liquidate leveraged longs. Spot Bitcoin ETFs saw net outflows of $435 million, with Fidelity’s FBTC and ARK Invest’s ARKB losing $135 million and $111 million, respectively.
Conversely, BlackRock’s IBIT attracted $268 million in inflows. MicroStrategy bolstered market confidence with its largest-ever Bitcoin purchase of 55,500 BTC worth $5.4 billion.
What’s Next for BTC?
Bitcoin’s key support levels are $88,000 and $90,000. A deeper correction could test the $80,000 mark, consistent with past bull-market behavior. On the upside, resistance at $95,000 could pave the way for a rally toward $98,000 if breached.
The RSI currently reads 76.23, signaling overbought conditions, declining from its recent peak of 80. Moving averages indicate caution. The 9-day moving average is $95,251, slightly above the current price, while the 21-day average of $88,953 suggests strong medium-term support. The bearish crossover implies continued consolidation in the short term.
Despite bearish momentum, analysts remain optimistic about Bitcoin’s year-end potential. Polymarket data shows a 72% probability of Bitcoin hitting $100,000 before Christmas. A rebound above $95,000 could lead to liquidations of $772 million in short positions, potentially fueling further gains.
Highlighted Crypto News Today
MicroStrategy Acquires 55,500 BTC, Total Holdings Reach 386,700
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Telegram’s crypto holdings rose to $1.3B in H1 2024: Report
What Changed in Donald Trump’s Cryptocurrency Wallet After the Last Big Bull Rally? Here is the Latest Altcoin Portfolio
US President-elect Donald Trump has seen some changes to the assets in his wallet after the recent cryptocurrency rally.
Apple CEO Makes Bitcoin Statement! Will Apple Invest in BTC?
Apple CEO Tim Cook announced that he invested in Bitcoin.
Santiment: "As Bitcoin Falls, Investors Keep These Three Altcoins on Their Radar!"
Santiment said that Sandbox, Stellar and Ethereum are the focus of investors and are the most talked about altcoins on social media.