Market Shock as Bitcoin Plunges Below $87,000
In a dramatic market development, Bitcoin has experienced a severe correction, with on-chain data revealing that over 12% of BTC addresses are now underwater – marking the highest level of loss-making positions since October 2024. This latest crash continues the bearish momentum that has gripped the market in recent weeks.
The cryptocurrency flagship has witnessed a sharp 7% decline in the past 24 hours, briefly touching $87,000 before slightly rebounding to $89,000. This downturn has triggered a cascade of liquidations across the crypto derivatives market, with total liquidations reaching a staggering $1.5 billion.
Key Market Impacts:
- Price Movement: 7% drop in 24 hours
- Liquidations: $1.5 billion wiped from derivatives markets
- Affected Holders: 12% of addresses now at a loss
- Market Sentiment: Fear levels increasing
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Technical Analysis and Market Outlook
According to data from IntoTheBlock, the Historical In/Out of the Money indicator shows a concerning trend as more addresses fall into negative territory. This metric, which tracks the average acquisition price of Bitcoin across all addresses, indicates a significant shift in market dynamics.
Market analyst Sarah Chen from CryptoView suggests, ‘This correction could represent a healthy reset of market expectations. However, the rapid increase in underwater positions signals potential further downside if support at $85,000 doesn’t hold.’
Broader Market Impact
The selloff hasn’t been isolated to Bitcoin, with altcoins experiencing even steeper declines. This market-wide correction has led to increased speculation about whether this represents a temporary pullback or the beginning of a more prolonged bearish phase.
Trading veteran Michael Rodriguez notes, ‘The current market structure suggests we’re seeing a typical bull market correction rather than a trend reversal. Historical data shows similar patterns during previous bull runs.’
Looking Ahead
While the immediate outlook appears challenging, institutional interest remains strong. The market will be closely watching key support levels around $85,000-$87,000 for signs of stabilization.
Source: NewsTC