As the US inflation report looms, Bitcoin is currently experiencing a bearish correction due to significant sell-offs among investors. This has led to intense bearish pressure in the $95K-$100K range, with various on-chain metrics indicating mixed sentiments about Bitcoin’s next direction. Traders on both sides are heavily influencing the price chart, creating a volatile market environment.
One key metric that has caught the attention of analysts is Bitcoin’s MVRV ratio, which dropped during the recent upward correction. The news of Binance selling off a significant amount of Bitcoin, Ether, Solana, and other cryptocurrencies has added to the market’s instability. As a result, Bitcoin is now fluctuating around the $98K level and recently underwent a correction to $95K. Data from Coinglass shows that total liquidations for Bitcoin spiked to $32.21 million, with buyers facing liquidations of $23.7 million and sellers around $8.41 million.
Additionally, IntoTheBlock data reveals that Bitcoin’s MVRV ratio decreased as its price rose over the past 72 hours, falling from 2.35 to 2.22. This decline in the MVRV ratio during a price surge often indicates that long-term holders are taking profits by selling their Bitcoin bought at lower prices, contributing to the current bearish pullback. Furthermore, Bitcoin’s volatility rate has dropped from 38.12% to 33.52%, potentially stabilizing its price within a certain range for the time being.
Despite the current downturn, several analysts view it as a buying opportunity, anticipating increased buying interest if Bitcoin dips further to establish a solid support level. This could potentially lead to a significant upward correction for Bitcoin in the near future.
Looking ahead, Bitcoin’s price is currently struggling to break above the 23.6% Fibonacci retracement level, aiming to hold below $95K as bearish pressure mounts. The price of Bitcoin has decreased by 3% over the last 24 hours, currently sitting at $95,027. If the price continues to hold below the crucial ascending support line, Bitcoin may retest the support level at $91K. Staying above this threshold could push the price towards $98K and possibly even $102,000. However, if Bitcoin trades below the EMA20 trend line on the 1-hour chart, downward pressure could drive the price below $89K. Investors are advised to closely monitor these key levels for potential trading opportunities in the volatile market.