Bitcoin’s Fork in the Road: Could BTC Soar to $90K or Plummet Further?
Exploring Market Indicators: Low Retail and Institutional Participation Raising Caution Flags for Bitcoin's Ascend to $90K
Key Points
- Bitcoin derivatives Open Interest (OI) has fallen to a five-month low due to traders de-risking amid volatility.
- Bitcoin needs to absorb incoming liquidity to reclaim $90K, but extreme fear and macro uncertainty are affecting risk appetite.
Bitcoin derivatives Open Interest (OI) has seen a significant decrease, hitting a five-month low. This is a result of traders de-risking in response to the current market volatility. In a period of less than two weeks, around $14 billion worth of positions have been closed.
Currently, Bitcoin has experienced a 10% recovery from its $78,000 low, suggesting a supply-side liquidity absorption. If Bitcoin reaches $86,729, this would bring 591.93K addresses holding 379.52K Bitcoin into a profitable position.
Challenges to Reclaiming $90K
In order for Bitcoin to reclaim the $90K mark, it would need to absorb incoming liquidity before it transitions into resistance. However, the persistent presence of extreme fear and macro uncertainty are impacting risk appetite negatively.
Retail participation remains low, with only 22K BTC outflows from all exchanges at $86,103, the lowest in a week. Meanwhile, institutional capital is also staying on the sidelines.
There are subdued FOMO signals, indicating that it’s still too early to confirm a strong holding pattern. This keeps the possibility of a near-term breakout uncertain.
Potential Pullback
In the near term, $86,669 stands as a crucial resistance level for Bitcoin. If this level is breached, there is a $51 million liquidation risk.
A significant group of HODLers would move ‘in the money’ near this threshold, while short-term holders (STHs) remain susceptible to profit-taking. This makes price stability a critical test.
Weak spot demand, combined with continued de-risking in derivatives, leaves Bitcoin vulnerable to another pullback before a potential move toward $90K.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitcoin News Update: S&P Rating Drop Highlights Tether’s Risky Asset Holdings and Lack of Transparency
- S&P downgrades Tether's USDT to "5 (weak)" due to high-risk reserves and transparency gaps. - Tether's 5.6% BTC exposure exceeds overcollateralization margins, risking undercollateralization if prices drop. - CEO dismisses critique as traditional finance bias, claiming no "toxic" assets in reserves. - Regulators intensify scrutiny as stablecoin centralization risks emerge amid $184B USDT circulation. - S&P urges Tether to reduce risky assets and enhance reserve disclosure to rebuild trust.
Dogecoin Latest Updates: Is a Repeat Performance on the Horizon? Holding $0.15 May Signal a 611% Rally for Dogecoin
- Dogecoin (DOGE) stabilized near $0.15 support, triggering historical 611% rally potential to $1 by 2026. - Grayscale's GDOG ETF and pending Bitwise BWOW ETF mark institutional adoption, though initial inflows remain muted. - Technical indicators show mixed momentum with RSI near oversold levels and key resistance at $0.16. - Market remains divided as ETF-driven liquidity and on-chain infrastructure contrast with macroeconomic and regulatory risks.
Turkmenistan’s Approach to Cryptocurrency: Centralized Oversight Amidst a Decentralized Age
- Turkmenistan legalizes crypto trading under strict 2026 regulations, granting state control over exchanges, mining , and custodial services. - Law mandates KYC/AML compliance, bans traditional banks from crypto services, and classifies digital assets into "backed" and "unbacked" categories. - Central bank gains authority to operate state-monitored distributed ledgers, contrasting with decentralized approaches in South Korea and Bhutan. - Framework aims to balance innovation with oversight, testing Turkme
Bitcoin News Update: Has $162 Billion Left Crypto Due to Institutional Buying or a Broader Market Pullback?
- BlackRock deposited 4,198 BTC and 43,237 ETH into Coinbase amid crypto sell-offs, despite $355.5M Bitcoin ETF outflows. - A 1.8M BTC ($162B) overnight exchange withdrawal sparks speculation about institutional accumulation or portfolio rebalancing. - $40B in BTC/ETH exchange inflows and record $51.1B Binance stablecoin reserves highlight institutional demand for regulated crypto products. - On-chain data shows 45% of large deposits (≥100 BTC) and 1.8M BTC withdrawals, indicating mixed market sentiment ah
Trending news
MoreCrypto prices
More
