Bitcoin hit a low of $91,215 a few hours ago, marking its third consecutive decline. It risks dipping below $91k following its latest low.
The apex coin ended its uptrend after surging above $102k for the first time in more than fourteen. Tuesday’s declines started after the US Job Openings and Labor Turnover (JOLT). The announcement resulted in a dip many traders claimed they did not expect.
The dip worsened on Tuesday when BTC sank to $92k but rebounded afterward. Its latest downtrend comes at a time when investors expect significant increases. The United States President-elect will assume office in less than two weeks, but the market has yet to experience massive pumps.
Why the Continuous Decline?
Bitcoin is experiencing intense selling pressure. Data from CryptoQuant suggests massive selling actions on exchanges, and the increasing exchange reserve is a clear indication of this trend. Although the asset has been negative over the last seven days, it has seen very weak buying pressure over the last 24 hours, resulting in a slight reserve increase.
The bearish sentiment extends into the derivatives market as the Taker buy-sell ratio dropped below 1 a few hours ago. It remained above 1 on Wednesday but slipped below the mark as the selling pressure extended into the sector.
BTC continues to see less buying pressure from several key regions. The Coinbase premium, which shows whales’ exposure and investor sentiment in the US, is negative. The same sentiment is present in South Korea as the Korea Premium is negative.
Data from Santiment reveals a reason for the ongoing decline. A report from the firm stated that “the ratio between positive and negative comments on social media toward crypto’s top asset is fairly neutral” as of January 9. Traders are yet to form an opinion about the next price action as they anticipate a more significant move.
While the market suffers from notable bearish fundamentals, other factors are at play. One such is a drop in global liquidity. A report from Yahoo Finance pointed to Wednesday’s recent increase of 5% in treasury yields.
For the first time since 2023, the 20-year yield, which lagged behind the US government debt curve,, saw a notable surge as worries increased that President-elect Donald Trump’s policies will increase deficits and reignite price pressures in the $28 trillion market.
Will Bitcoin Lose $90k?
Most indicators on the one-day chart are negative. The moving average convergence divergence had a negative interception as the 12-day EMA intercepted the 26-day EMA from above. The bearish divergence may signify further declines in the coming days.
At the time of writing, it was trading at $92k, edging closer to the 38% Fibonacci retracement level. The bulls may defend the $90k support. However, a slip may guarantee a rebound around the high Fib level at $88k. The relative strength is currently neutral, suggesting that prices may decline further.
However, the bears may be exhausted. The binary CDD, which indicates the activities of long-term holders, is green. This suggests that fewer HODLers are moving coins into exchanges for selling, which may translate into less selling pressure in the coming days.
If the trend holds true, the downtrend may slow down in the next 24 hours. It is also worth noting that exchanges’ netflow is negative over the last 24 hours as some investors move more asset from these trading platforms.
Bitcoin may reclaim $95k while testing the $97k.
