Bitcoin Plunges Below $90K Amidst Internal and External Pressures

Bitcoin's price has experienced a significant downturn, falling below the $90,000 mark and reaching as low as $87,000 levels. This decline has distanced the cryptocurrency from its January all-time high of over $109,000. The sharp sell-off comes amid both internal and external challenges, leaving investors uncertain about the future.

Analyst Mac.D, a contributor to the CryptoQuant QuickTake platform, has analyzed the current market scenario and provided a detailed outlook. According to Mac, a combination of internal and external pressures has contributed to Bitcoin's recent plunge. Internally, the aftermath of a notable Ethereum-related hacking incident has unsettled the broader crypto market. Externally, ongoing inflation concerns and the reintroduction of tariff policies under the Trump administration have weighed on risk assets, including Bitcoin.

These factors have collectively led to a break below the crucial $90,000 support level, according to Mac. The analyst further points to two key elements that could influence Bitcoin's trajectory moving forward. First, the recent liquidation of long positions has reached its highest level since November, with $245 million worth of long positions wiped out. Such large-scale liquidations often reduce market depth, creating conditions that might enable a price rebound. Second, the average entry price for whale investors holding Bitcoin for less than six months is around $89,600. This psychological support level may help stabilize the market if these whales refrain from further selling.

Despite these potential supports, the outlook is far from certain. Mac cautions that if the support level fails to hold, further declines could occur. In this scenario, he recommends proactive risk management strategies, including short positions in futures or partial liquidation of holdings. Another analyst, RektCapital, offers a more optimistic technical view. According to RektCapital, Bitcoin's recent drop might be a temporary setback, and a rebound could already be taking shape.