Bitcoin’s $90K Level Under Review: Here’s What Analyst Suggests
Bitcoin’s $90K Level Under Review: Here’s What Analyst Suggests Bitcoin (BTC) has continued to exhibit bearish sentiment, currently trading below $91,000. This decline has sparked debates about its future trajectory, with analysts closely examining major market metrics to understand where BTC’s price action could likely be headed next. Among these, CryptoQuant contributor Percival’s detailed insights shed light on Bitcoin’s current state, offering an in-depth look at key market trends. Bitcoin Market Dynamics And Key Indicators Percival’s analysis highlights Bitcoin’s seasonal behavior, which has consistently influenced its price patterns in recent years. Historically, the final months of the year see increased sell-side pressure, often extending into January. This year is no different, with institutional profit-taking and broader macroeconomic factors playing a significant role. Despite these challenges, Bitcoin has shown resilience, maintaining a $90,000 support level despite heavy selling pressure. According to Percival, Bitcoin has experienced a 13% decline in Open Interest, much of it attributed to institutional activity on platforms like the Chicago Mercantile Exchange (CME). Bitcoin CME futures open interest. | Source: CryptoQuantBitcoin exchange-traded funds (ETFs) have also seen a reduction in monthly inflows, dropping from $14 billion to $6.6 billion. These declines reflect broader market sentiment but also highlight Bitcoin’s ability to sustain critical support levels. On the sell side, Percival noted that December saw substantial pressure, with outflows reaching $200 million per day. However, this trend eased in January, with sell-side risk indicators showing a balanced market. This can be attributed to the Short-Term Holder Market Value to Realized Value (STH MVRV) remaining in a favorable zone, signaling that short-term investors are not facing unbearable losses. This stability suggests that short-term holders are unlikely to contribute to further downward pressure, creating an environment that supports Bitcoin’s $90,000 floor. Demand Trends and Future Scenarios While sell-side pressure has diminished, demand dynamics remain a critical factor in Bitcoin’s outlook. Percival highlighted a slight slowdown in on-chain volume, though it continues to hover around a healthy $12 billion across exchange inflows and outflows. This level of activity indicates that Bitcoin still retains strong market interest despite recent price declines. Percival also pointed to a potential risk in the gap between the STH MVRV average of 1 and the short-term holder cost base of $88,000. Bitcoin Short-Term Holder Market Value to Realized Value (STH MVRV). | Source: CryptoQuantThis gap could act as a “breathing space” for external market events to influence Bitcoin’s price, potentially challenging its ability to maintain the $90,000 support. However, for now, the balance between demand and sell-side risks suggests a period of consolidation rather than a significant further decline. Percival wrote: The odds favor the $90K floor, but beware! There is a gap in the STH MVRV between 1.08 and the average at 1 (STH cost base $88), and this difference can become the “breathing space” for an eventual external scenario, zeroing the possibility of going deeper! BTC price is moving upwards on the 2-hour chart. Source: BTC/USDT on TradingView.comFeatured image created with DALL-E, Chart from TradingView Samuel Edyme Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others. Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis. Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics. When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…) Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life. In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps. Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.” PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.