Bitcoin (BTC), a popular cryptocurrency, has fallen significantly from its recent high of over $126,000 in October. Right now, Bitcoin is trading at about $86,500. This drop has led to unpredictable movement, with no clear signs that the trend is turning around. Experts are focusing on whether Bitcoin can rise above $88,000 soon. If it can’t, Bitcoin’s value might keep going down.
Why $88,000 Matters
Analyst Michaël van de Poppe has been studying Bitcoin’s current behavior. He notes that Bitcoin is stuck in a zone between its support (the lower level where buyers usually come in) and resistance (the higher level where sellers tend to push prices down). For Bitcoin to stop its downward trend, van de Poppe believes it must break above $88,000.
So far, this hasn’t happened. Bitcoin briefly reached $88,000 but then dropped to $87,500. Over the last week, Bitcoin has been moving between $85,100 and $93,000. This range reflects uncertain price action, with no clear breakout yet. Traders are now watching lower levels like $83,000 and $80,000 as potential next stops.
Looking for a New Price Floor
Another analyst, Kamran Asghar, thinks Bitcoin is searching for a new stable base, or floor, after falling below a key line of support. He suggests that $86,500 might be a short-term floor. However, there is a risk Bitcoin could test deeper levels. Asghar mentions a zone between $72,000 and $75,000 that has not been touched since early 2024 during a major market breakout.
This area is called a demand zone by traders. A demand zone is where many buyers are expected to show interest, helping to stop further drops. If Bitcoin’s current price range doesn’t hold, it could move toward this lower target region.
Concerns Over Long-Term Trends
Bitcoin recently lost support from a key trend indicator called Supertrend on the weekly chart. This hasn’t happened since January 2023. The Supertrend indicator helps measure long-term trends, and breaking below it signals a worrying change in direction.
According to a post by Bitcoinsensus, this break is significant because it’s the first loss of structure since the bull cycle started. A bull cycle is when the price of an asset steadily rises over a long period. Many long-term investors who have held Bitcoin for years are now selling their positions. Ted, an analyst, pointed out, “Long-term holders are now selling Bitcoin at their fastest pace in 7 years.”
When long-term holders exit, it increases selling pressure, making it harder for Bitcoin’s price to recover quickly.
Liquidations Are Affecting the Market
The recent drop in Bitcoin’s price is heavily influenced by liquidations. Liquidations happen when traders with borrowed money cannot meet the required financial conditions, forcing them to sell their assets. Learn more about it here. According to Bitcoin Duniya, this selling wasn’t caused by regular demand but by leveraged positions being closed.
Leverage is when people borrow money to trade larger amounts than they actually own. If prices suddenly fall, these leveraged positions can trigger automatic selling to cover losses. This puts pressure on the market, causing prices to drop further.
While demand remains steady, as pointed out by CryptoPotato, selling pressure continues to dominate. Until demand grows stronger than the selling pressure, Bitcoin’s recovery in price may be limited. Experts remain cautious, suggesting that further drops in price cannot be ruled out.
This article originally appeared on CryptoPotato.