U.Today - Bitcoin (BTC), the largest cryptocurrency, finally drops below $90,000, losing $118 billion in capitalization in 12 hours. However, CryptoQuant's verified author does not expect this drop to go much lower since short-term holders remain in profit.
Bitcoin (BTC) price to $88,000: Next (LON:NXT) key level to track
In the short term, the Bitcoin (BTC) price might find its local "floor" at $90,000. However, entering the "breathing space" in $88,000 zone will not surprise pseudonymous cryptocurrency analyst Percival, CryptoQuant's verified author.Such a forecast was shared by the analyst in his latest CryptoQuant QuickTake publication.
He stressed that a combination of factors demonstrated that powerful "selling pressure" from the last few days of 2024 expanded to the start of the new year. Also, he noticed that Bitcoin ETF (TSX:EBIT) flows declined, while Open Interest also registered a massive drop.
At the same time, short-term Bitcoin holders might not be bothered by the current decline:
While "odds favor the $90K floor," the expert recommends all traders look at $88,000, as this level is of paramount importance for short-term holders.
$700 million liquidated in worst session for bulls
Also, the speaker does not see the opportunity for the Bitcoin (BTC) price to go deeper even if it hits $88,000.Meanwhile, Bitcoin (BTC) is in the middle of its worst sell-off in the last three weeks. The net volume of liquidations in crypto exceeds $700 million, CoinGlass data shows.
Out of this sum, $300 million were wiped out in the last four hours. Bitcoin (BTC) dropped to $89,500 but then recovered to $92,500, bringing pain to both bulls and bears.