Amid the ongoing correction phase, the crypto market is bleeding intensely. As bullish liquidations skyrocket, Bitcoin (BTC) price nears the $92K support.
Over the past three days, the total crypto market cap valuation has dropped from $3.5 trillion to $3.2 trillion, recording a nearly 9% drop. As the bearish cloud grows intense over the crypto market, Bitcoin BTC $78 824 24h volatility: 0.5% Market cap: $1.56 T Vol. 24h: $70.24 B is down under the $94,000 mark.
Amid high liquidations and shifting dynamics in early 2025, fear in the crypto market is increasing. Will this result in a pullback in Bitcoin to the $86,000 level?
Bitcoin Price Analysis
In the 4-hour chart, the BTC price trend reveals an intense correction phase after facing opposition at the $102,000 mark. Due to the intense selling pressure, the 50 and 100 EMA lines have given a bearish crossover.
Furthermore, the RSI line has reached the oversold boundary line. However, the BTC price is nearing the crucial support level of $92,118.
Supporting the chances of a bullish comeback from this level, the RSI line is reflecting a minor divergence as it maintains a sideways shift as BTC price falls.
Hence, a potential bearish continuation to $92,000 levels is possible as the selling pressure grows. However, a bullish comeback will likely result in a V-shaped recovery to challenge the 200 EMA line at $96,397.
ETFs Record ~$580 Million Outflow, Second Single-day Largest Ever
During the recent pullback, the institutional support for Bitcoin has declined significantly. On January 8, the net outflow of the 12 US-based spot Bitcoin ETFs bled $582.90 with 8 ETFs recording outflow, while 4 remained with a net-zero flow.
Leading the bearish pack Fidelity’s FBTC recorded an outflow of $258.69 million. At 2nd place, ARK and 21Shares recorded an outflow of $148.30M, followed by BlackRock selling $124.05M worth of Bitcoin.
As the total net assets of Bitcoin ETFs are down to $106.8B, the 3-day streak of positive inflows has been broken with a massive outflow. Furthermore, it marks the 2nd largest outflow in the history of Bitcoin spot ETFs, as a second close to the $680M outflow on December 19.
On-chain Reveal Crucial Support above $90k
As the BTC price remains in a free fall, the in and out of the money around the price highlights a few areas of support. While the price band between $79,000 and the $104,000 mark highlights more than 84.89% of BTC out of the money.
The nearest support for Bitcoin stands at $93,163. This range extends from $90,385 and holds a total volume of 222.2k BTC.
Bitcoin Open Interest Down to $60B as Liquidations Spike
As the bearish sentiments in the crypto market are increasing, the Bitcoin open interest is down to $60.74 billion. This records a 2.23% dump in the past 24 hours.
Furthermore, the long-to-short ratio has dropped to 0.9436%, as the funding rates remain at $0.0090. With the recent sell-off, the crypto market has witnessed liquidations of $480 million over the past 24 hours.
Out of this, the bulls have lost $341 million, and the largest single liquidation happened over the OKEx exchange in the BTC-USDT swap pair, worth $15.30 million. Specifically, in Bitcoin, the $134 million worth of liquidation in the past 24 hours constitutes $92.38 million of bullish liquidations.
Whales Secure Their BTC in a Crashing Market
Despite the massive correction faced in the crypto market, some diamond hands are continuing to transfer their Bitcoin from exchanges. Over the past week, more than 22,000 Bitcoins have been withdrawn from exchanges.
This is worth $2.10 billion. The declining trend in the exchange reserves is failing to increase artificial demand for bitcoin in the market. As BTC price continues to fall, the declining exchange reserves will act as a bullish catalyst once the market stabilizes.
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