Bitcoin (BTC) Sees Significant Dip Below $92,000
In the latest trading session, Bitcoin (BTC) experienced a notable decline, dipping below the $92,000 mark. This price movement revisits levels that have shown resilience multiple times since December. Notably, this recent drop is accompanied by a surge in perpetual futures open interest, indicating a prevailing sentiment among sellers.
Data from Coinglass reveals that the open interest in the BTC/USDT pair on Binance increased by approximately 12,000 BTC, equivalent to over $1 billion, as the price of BTC fell from $96,000 to below $92,000. This rise in open interest, coinciding with a price decrease, typically signals a growing influx of bearish short positions. Traders appear to be opening new short positions in anticipation of a further decline in BTC’s value.
The cumulative volume delta (CVD), which tracks net capital flows in both the futures and spot markets on Binance, was already negative before the price drop and has intensified since. This trend indicates that selling pressure has significantly outpaced buying activity. The CVD serves as a barometer for market sentiment; positive and rising values suggest buyer dominance, while negative values highlight increased selling pressure.
BTC Forms a Bearish Marubozu Candle
On Monday, Bitcoin recorded a substantial drop of 4.86%, with sellers firmly in control of the price action throughout the day. This is clearly illustrated in the candlestick formation for Monday, characterized by minimal upper and lower shadows and a pronounced red body. Essentially, the opening and closing prices were nearly identical, indicating that buyers had little influence over the market’s direction.
Technical analysts classify this formation as a bearish marubozu pattern. The emergence of this bearish candlestick, particularly while prices remain below critical 50- and 100-day simple moving averages (SMA), may further embolden sellers and could lead to deeper losses for the cryptocurrency.
Support levels are identified near $89,200, aligning with the low recorded on January 13, followed by the 200-day SMA positioned at around $81,661. Conversely, the February 21 high, approximately $99,520, represents a crucial resistance level that buyers will need to overcome.
