- Bitcoin dropped 12% to $82K, then rebounded to $86,441, with a market cap of $1.72T.
- Long positions on Bitfinex surged, raising liquidation risks.
- Bitcoin reached key support levels and needs to reclaim $90K for bullish momentum.
- If resistance holds, BTC may stay in the $80K-$90K range.
Bitcoin (BTC) has experienced significant turbulence over the past week, plunging 12% to a low of $82,000 before staging a sharp rebound. Despite the decline, BTC has shown resilience, quickly bouncing back to its current price of $86,441. The cryptocurrency’s 24-hour trading volume stands at $130.67 billion, with a market capitalization of $1.72 trillion.
With BTC facing heightened volatility, traders are now watching key technical levels to determine whether the market has found a bottom or if further downside is on the horizon.
Bitfinex Long Positions Spike, A Warning Sign?
A familiar pattern is emerging on Bitfinex, where long positions tend to rise sharply during price declines, often leading to increased liquidations. Currently, long positions on the exchange have surged by 5,100 BTC, while short positions have only increased by 1,000 BTC. This imbalance suggests that large investors (whales) could be strategically selling into the market, increasing the risk of further downside.
If this trend continues, BTC may face additional downward pressure as long positions get squeezed. However, if the market stabilizes, Bitcoin could establish a local bottom, paving the way for a potential recovery.
Can Bitcoin Reclaim $90K and Reverse the Downtrend?
According to crypto analyst Daan Crypto Trades, Bitcoin has reached a critical support level after losing the $90K range low. The price has now tapped the golden Fibonacci retracement level, as well as the Daily 200MA/EMA, a historically significant indicator of market trends.
For BTC to regain bullish momentum, it must reclaim the $90K level. A successful retest of this zone could signal the start of a recovery. However, if resistance holds, Bitcoin may continue to trade within a range between $80K and $90K in the near term.
With uncertainty still looming, traders and investors will be closely monitoring BTC’s movements. Will Bitcoin reclaim $90K and spark a rally, or will further selling pressure drive the price lower? The coming days will be crucial in determining the next phase of the market.
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