Bitcoin’s price has faced a dramatic downturn, falling below $90,000 and reaching as low as $87,000 levels today. This steep decline places the cryptocurrency further away from its January all-time high of over $109,000.
The sharp sell-off comes amid both internal and external challenges, leaving investors uncertain about what lies ahead. While the market struggles to find support, the path forward so far remains unclear
However, Mac.D, a contributor to the CryptoQuant QuickTake platform has managed to analyze the current market scenario and give a detailed outlook.
Is A Rally Still Possible For Bitcoin?
Diving into the outlook, Mac first touched on the major factors behind the ongoing plunge in Bitcoin’s price. According to Mac, a combination of internal and external pressures have contributed to Bitcoin’s recent plunge.
These factors have collectively led to a break below the crucial $90,000 support level, according to Mac, the analyst further points to two key elements that could influence Bitcoin’s trajectory moving forward.
First, the recent liquidation of long positions has reached its highest level since November, with $245 million worth of long positions wiped out. Such large-scale liquidations often reduce market depth, creating conditions that might enable a price rebound.
Second, the average entry price for whale investors holding Bitcoin for less than six months is around $89,600. This psychological support level may help stabilize the market if these whales refrain from further selling.
Despite these potential supports, the outlook is far from certain. Mac cautions that if the support level fails to hold, further declines could occur. In this scenario, he recommends proactive risk management strategies, including short positions in futures or partial liquidation of holdings.
Technical Outlook On BTC
With Bitcoin currently trading at $87,132, it is quite obvious that the asset has breached the $89,600 support highlighted by Mac. While Mac suggests this breach could lead to further declines, another analyst, RektCapital, offers a more optimistic technical view.
According to RektCapital, Bitcoin’s recent drop might be a temporary setback. The analyst highlights a potential downside deviation that often precedes a significant price recovery, indicating that a rebound could already be taking shape.
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
