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Bitcoin (BTC), the largest cryptocurrency, finally drops below $90,000, losing $118 billion in capitalization in 12 hours. However, CryptoQuant's verified author does not expect this drop to go much lower since short-term holders remain in profit.
Bitcoin (BTC) price to $88,000: Next key level to track
In the short term, the Bitcoin (BTC) price might find its local "floor" at $90,000. However, entering the "breathing space" in $88,000 zone will not surprise pseudonymous cryptocurrency analyst Percival, CryptoQuant's verified author.
Is Bitcoin’s Indecision Channel Trying to Find Demand to Continue?
— CryptoQuant.com (@cryptoquant_com) January 13, 2025
“The odds favor the $90K floor, but beware! There is a gap in the STH MVRV between 1.08 and the average at 1 (STH cost base $88), and this difference can become the “breathing space” for an eventual external… pic.twitter.com/fpt1UzDctD
Such a forecast was shared by the analyst in his latest CryptoQuant QuickTake publication.
He stressed that a combination of factors demonstrated that powerful "selling pressure" from the last few days of 2024 expanded to the start of the new year. Also, he noticed that Bitcoin ETF flows declined, while Open Interest also registered a massive drop.
At the same time, short-term Bitcoin holders might not be bothered by the current decline:
STH (short-term holders) do not see realized losses that bother them: the level of loss today is bearable.
While "odds favor the $90K floor," the expert recommends all traders look at $88,000, as this level is of paramount importance for short-term holders.
$700 million liquidated in worst session for bulls
Also, the speaker does not see the opportunity for the Bitcoin (BTC) price to go deeper even if it hits $88,000.
Meanwhile, Bitcoin (BTC) is in the middle of its worst sell-off in the last three weeks. The net volume of liquidations in crypto exceeds $700 million, CoinGlass data shows.
Out of this sum, $300 million were wiped out in the last four hours. Bitcoin (BTC) dropped to $89,500 but then recovered to $92,500, bringing pain to both bulls and bears.