The cryptocurrency market faces a major shake-up as Bitcoin plunges below the psychological support level of $90,000. This sharp correction wiped out nearly $170 billion in market capitalization within just 24 hours, catching overexposed traders off guard.
The market has violently punished the prevailing euphoria. As Bitcoin attempted to consolidate its recent all-time highs (ATH), the rejection below the $92,300 level triggered a cascade of liquidations. According to Coinglass data, over $520 million in positions were liquidated across the crypto market, with an overwhelming majority being long positions.
This corrective move resembles a classic leverage flush. Traders betting on an immediate continuation of the bull run without strict risk management have been forced out of the market. This extreme volatility serves as a reminder that despite institutionalization through ETFs, Bitcoin remains an asset capable of erratic movements, exacerbated by high-frequency trading and derivatives products.
Earn $90 in BTC for purchasing a Ledger wallet with our exceptional offer. It’s still available for a few more days, take advantage here:
Beyond simple price action, technical fundamentals and on-chain data are sending cautionary signals. The current crash doesn’t appear to be an isolated event, but rather the consequence of a market structure weakened by low liquidity on the order book side. When there are few buy orders (bids) to absorb sudden selling pressure, price drops much more rapidly.
Furthermore, analysis of exchange inflows suggests that certain whales are taking advantage of elevated levels to realize profits. This distribution behavior, coupled with macroeconomic uncertainty related to recent Federal Reserve (Fed) decisions, creates a perfect cocktail for increased bearish pressure. If short-term holders begin panic selling at a loss, the market could enter a deeper capitulation phase.
The burning question on investors’ minds is whether we’re witnessing a simple healthy retracement before a new bullish impulse, or the beginning of a short-term bearish trend reversal. For technical analysts, the $85,000 zone constitutes the first serious line of defense. If this support gives way, the door would be open for a liquidity test toward $80,000.
However, as long as the underlying structure remains bullish on weekly timeframes, many institutional investors could view this decline as an opportunity to “buy the dip”. Currently trading below its weekly high, bids have appeared in the south on the Binance order book heatmap, down to $80,000. A sign that traders are now expecting a deeper correction.
The price reaction at these key zones over the next 48 hours will be decisive for the remainder of the cycle.
Related articles:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
