Bitcoin (BTC) has experienced a significant decline, dropping below $94,000 for the first time since early May. This downturn has erased over $1 trillion from the total cryptocurrency market valuation since October, prompting investors to reassess the depths of this current market phase.
Market analyst Axel Adler Jr. has highlighted two critical downside targets: $87,000 and $74,000. He emphasizes that these levels are crucial to monitor, particularly as on-chain activity indicates that both price points are now within reach. Meanwhile, fellow analyst Egrag Crypto draws parallels between the current market behavior and patterns observed in 2017, noting that Bitcoin is undergoing its seventh dip within the current cycle. He argues that previous cycles exhibited diminishing declines before a significant rally.
Despite these observations, there is a contrasting sentiment among analysts regarding the near-term outlook. Some experts caution that Bitcoin must stabilize following the recent sell-off, while others, like Rekt Capital, warn that a weekly close above the 50-week exponential moving average (EMA) is necessary to maintain a favorable long-term trend. Failing to hold this level could increase the risk of a more extensive downturn.
The recent price action has led to considerable liquidations in the market, with reports indicating that $1.2 billion in leveraged positions were liquidated in just 24 hours, impacting over 240,000 traders. The largest single liquidation occurred on the HTX exchange, totaling $44 million.
As of now, Bitcoin”s price is hovering around $95,400, reflecting a 7% decline in the past 24 hours and a 13% decrease over the last two weeks, according to data from CoinGecko. The broader market has also felt the impact, with Ethereum experiencing an approximate 11% drop and many altcoins reporting double-digit losses.
Since the rejection at $107,000, a consistent pattern of lower highs and lower lows has emerged. On-chain metrics reveal dense trading activity around $95,900, but there is minimal support between $95,000 and $82,000. This lack of support raises concerns of a rapid price movement should the current floor break.
Overall, the cryptocurrency market is currently navigating persistent liquidity challenges exacerbated by retail exhaustion and a shift in capital towards AI-related stocks. In the coming days, traders will closely monitor the key price levels of $95,000, $87,000, and $74,000 to assess whether the market can stabilize or if it will continue to slip further.
