- 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.
