Bitcoin Price Drops But Strong Support Continues to Bolster Market Confidence
Bitcoin (BTC) started the weekend with a slight decline as cautious sentiment prevailed across the cryptocurrency market. At press time, BTC was trading around $108,000, down about 2.4% over the past 24 hours, after sliding from a recent high of $112,000.
The selling pressure comes amid growing concerns over global macroeconomic factors, affecting the entire risk asset market, including cryptocurrencies. Data from CoinGlass shows that the total value of derivatives positions liquidated in the past 24 hours has reached nearly $600 million. Of this, long positions – those betting on prices to rise – accounted for the majority of the liquidation with $507 million wiped out, while shorts accounted for $87 million.
Market sentiment cautious despite ETF inflows still rising
It is worth noting that the price drop occurred while Bitcoin was still recording strong capital flows into ETFs and increasingly clear participation from institutional investors. However, the market seemed unable to maintain the upward momentum, leading many experts to predict that there will be no significant breakthrough this weekend.
The funding rate on derivatives exchanges – an indicator of market direction – is currently hovering around 0.0079%, below neutral, indicating that investors are “sitting still”. On the top 10 coin rankings, the decline in risk appetite is also clearly noted.
On-Chain Support at $94,000 – Hope for Bulls
According to on-chain data platform Glassnode, over 420,000 BTC were purchased around $94,000 – marking one of the largest clusters of support in the current cycle. This dense accumulation zone played a key role during the consolidation phase in early May and supported Bitcoin’s subsequent breakout to new highs.
While Bitcoin is in a technical correction and may be facing profit-taking pressure, the solid support at $94,000 is a key fulcrum, Glassnode said. As long as the price remains above this zone, the long-term recovery outlook remains intact.
Next Steps: Wait for Technical and Macroeconomic Signals
Analysts will continue to closely monitor technical support and resistance levels, as well as new developments from macro data – including interest rates, employment data, and moves from the US Federal Reserve (Fed). In the context of a lack of strong momentum in the market, the $94,000 threshold is considered a “red line” – which can determine the next trend of BTC in the short term.