Bitcoin (BTC) Price Drops, but Historic Support Offers Hope
Emily HarrisBitcoin Experiences Dip Amid Broader Crypto Market Decline
Bitcoin, the leading cryptocurrency, saw a decline in its trading price early Saturday morning. At the time of writing, Bitcoin was down 2.38% in the last 24 hours, trading at $108,194. This follows a drop from $112,000 to $106,800 yesterday, as the broader crypto market fell due to macroeconomic concerns.
According to CoinGlass data, $594 million in crypto derivatives were liquidated in the last 24 hours, with crypto bulls losing $507 million while shorts accounted for $87 million. The pullback arrived just as Bitcoin saw increased ETF inflows and institutional interest, leading some to anticipate an uneventful weekend.
This sentiment is reflected in funding rates, which signal traders' sentiments in the perpetual swaps market. Funding rates remain muted at 0.0079%, which is below neutral, suggesting caution among traders.
On-Chain Data Reveals Strong Support at $94,000
Despite the short-term caution, on-chain data reveals that Bitcoin is forming support at lower levels. According to the on-chain analytics platform Glassnode, more than 420,000 BTC now have a cost basis around the $94,000 level, forming one of the strongest support zones in the current cycle. This massive accumulation zone has held firm through consolidation in early May, providing a launchpad for Bitcoin's breakout to new highs.
Although Bitcoin is currently experiencing profit-taking, the strong on-chain support at $94,000 provides bulls cause to remain hopeful. As long as BTC remains above this level, the broader rise could continue.
Analysts will now watch key technical levels and macroeconomic indicators to predict Bitcoin's next move. For the time being, $94,000 remains a line in the sand.
