Bitcoin News Today: Bitcoin Trapped Below $88K as Altcoins Sink in Liquidity Crisis

Bitcoin Stalls Below $88K Amid ETF Inflows and Altcoin Liquidity Crisis

Bitcoin (BTC) remains trapped in a narrow trading range between $86,000 and $88,000 as market participants await a decisive breakout following a 35% decline from its $126,000 all-time high according to analysis. The recent price consolidation follows a weekend rebound from a seven-month low of $80,500, driven by oversold conditions on the daily RSI indicator. While the 4-hour RSI has flipped to a neutral stance near 50, the 50 EMA at $89,000 and the 20 EMA at $87,000 remain key technical hurdles.

The crypto market's broader bearish momentum was amplified by four consecutive weeks of spot ETF outflows totaling $4.34 billion, with BlackRock's IBIT alone sheding $1.09 billion. However, recent data shows a reversal: ETF inflows surged to $238 million over the weekend, coinciding with a 6% rise in Bitcoin's futures funding rates as long positions rebuild. Analysts suggest the inflows reflect a return of investor appetite amid perceived bargain levels, though derivatives positioning remains defensively skewed.

Altcoins face a steeper challenge as liquidity dries up. The CoinDesk Fear and Greed Index remains at 12/100, signaling "extreme fear," with tokens like TON and DOT exhibiting shallow market depth that exacerbates volatility. The Altcoin Season indicator fell to 23/100 from 30/100, underscoring a shift toward Bitcoin and stablecoins. Liquidations have further compounded the crisis: $1 billion in positions were wiped out in the past 24 hours, with Bitcoin tumbling 8% to $85,300 and Solana (SOL) hitting an intraday low of $130.52.

BNB, the second-largest cryptocurrency by market cap, presents a mixed outlook. While it has stabilized near $919, it remains below critical Ichimoku Cloud resistance at $1,109.66 and the 0.618 Fibonacci retracement level at $640 according to analysis. A bullish divergence on the 4-hour chart offers hope for a rebound, but a breakdown below $880 would invalidate the setup according to analysis. Analysts at Cryptorphic note that a breakout above $925 could reignite momentum, though the 14-day 2.7% decline suggests caution.

The path forward hinges on Bitcoin's ability to break out of its consolidation range. A move above $88,000 could retest $90,000 and eventually $100,000, but failure to hold the 20 EMA risks a return to $80,000 levels. Meanwhile, the $4.2 billion in Bitcoin and Ethereum options expiries this week could exacerbate volatility, with Deribit data showing a put-call ratio of 1.36 for BTC and 1.01 for ETH according to analysis.