Bitcoin saw a massive spike in selling volume as the crypto market sank lower into bearish dominance. It continues the previous day’s decline, hitting fresh lows.
The apex coin opened Tuesday at $91,516 but experienced a slight price increase. However, the hike was short-lived as the bears resumed selling. The largest coin plummeted, breaking the $90k support. It continued downward until it met buyback at $87,629.
BTC is slightly higher than its low at the time of writing. It is currently trading above the 38% fib level at $88,968. It is down by almost 3% and sees a lesser decline than it did on Monday.
The previous intraday session was one of the most bearish for the apex coin. It opened at $96,264 but retraced, breaking the $94k support. It continued downwards until it rebounded at $91,330. Although it saw a slight recovery, it lost almost 5%.
Donald Trump Is At It Again
The US Secretary of Commerce released a statement a few days ago. He asserted that introducing fresh tariffs would not impact inflation or recession. Crypto investors took the message and rallied the apex coin. It gained almost 2% during this session.
However, the latest series of declines started due to significant bearish fundamentals. On Monday, the US president announced the continuation of the trade wars. Traders expected that the wars would stop after the series of meetings between the United States President and the Canadian counterpart.
However, Donald Trump announced that the temporary pause on the duties is over. They will take effect this week. The crypto market sees massive outflows due to the news as traders seek a haven. They are investing in less volatile assets like Gold.
The effects of the latest decline are far-reaching, with liquidations surging above $1.41 billion in the last 24 hours. Traders lost over $577 million trading Bitcoin on the derivatives market. Long position holders were the biggest losers, losing over $520 million.
Bitcoin Whales Scoop Up Excess Supply
Data from CryptoQuant points to the whales scooping up the excess supply. Exchange reserves slightly declined in the last 24 hours as the buyback continues amid selloffs.
However, the exchange netflow is +669%, indicating investors are dumping more. They are moving assets out of cold storage into trading platforms with the intent of selling. The Bitcoin network has seen a lot of activity in the last 24 hours. Active addresses surged by over 64%, transactions rose by 141%, and transfer volume is 27% higher.
The Coinbase premium is negative, as traders exhibit stronger selling pressure at the time of writing compared to the previous day. This is the same reading on the Korea premium, indicating that Asian markets are equally bearish.
Is an End in Sight?
Data from Coinglass shows ongoing whale buybacks over the last 12 hours. The chart below indicates tiny bubbles representing such trades. The aepx coin may continue upward as more buy orders are getting filled. A total of $4.80 billion buy orders were executed as opposed to the $1.11 billion sell orders on the Binance BTC/USDT Perpertual. However, the spot market receives less attention.
The reading from the above chart suggest that the derivatives may be the trigger for a trend reversal. However, the asset grapples with signifcant selling pressure that threatens to push prices lower.
Readings from the one-day chart supports claims of an impending rebound. The apex coin trades below the bollinger band. This signifies peak selling pressure and imminent price surge. It is also worth noting that BTC is currently oversold.
