BTCUSD – Daily Chart
BTC has support down to $90k but a move below that could go back to $73.5k making this a false breakout.
Bitcoin pulled away from multi day lows on Tuesday after a brutal day saw the liquidation of more than $500 million of crypto longs.
Trader Skew said the $92.5k area was essential for bulls to hold. “To me the $92.5K – $92K area on BTC is very important now,” he told X followers. Losing that I think the market as whole would sell off”.
The co-founder of 21st Capital said on X that the move may have exhausted leverage, saying: “See how nicely the levered longs were swept. Nothing left to liquidate on the long side”.
Analysts are discussing market positioning, highlighting that this is a very speculative move. One analyst said that BTC was being used to get money out of Europe as war tensions escalated.
BTC has seen similar moves in the past when a previous all-time high was driven by Chinese investors escaping capital controls. A reversal of the recent move could be sharp if a correction gets underway.