Bitcoin Drops Below $90K Amid Market Fear

Bitcoin’s price fell below $90,000 on Tuesday, marking its lowest level since April and injecting uncertainty back into the cryptocurrency market. The decline extends a week-long downtrend, with the asset losing over 11% of its value since November 11th, according to Farzam Ehsani, CEO of VALR.

Hourly charts indicated sustained selling pressure, with increasing volume as prices slipped. Technical indicators show the Relative Strength Index (RSI) in oversold territory near 24, while the Commodity Channel Index (CCMF) remains below zero. Despite brief attempts by buyers to stabilize the price, the market is largely driven by sellers.

Interestingly, data reveals a significant spike in demand from long-term holders (LTHs) during this downturn. Accumulation by permanent holders has reached levels previously observed before major market rebounds. This suggests that long-term capital is viewing the correction as a buying opportunity.

Short-term holders (STHs), however, continue to sell into the prevailing fear, contributing to the market’s volatility. Even investors typically cautious during periods of stress are now entering the market. “The coming weeks will be turbulent,” noted Ehsani, citing instability in the technology sector and a lack of macroeconomic benchmarks.

Key price levels to watch include the Active Realized Price at $89,400, currently being tested, and the True Market Mean Price at $82,400. According to Joao Wedson, CEO of Alphractal, these levels are critical. Wedson suggests potential entries for high-risk traders near $89,000 and $82,000 with tight stop-loss orders.

A deeper downturn could lead to the CVDD buy zone, around $45,500-$50,000, which historically marks the return of cycle-bottom demand.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.