TL;DR:
- The crypto market recorded $289 million in liquidations and strong outflows from BTC and ETH ETFs in 24 hours.
- Experts point to the $84,400 zone as a crucial support for Bitcoin, which is still trading sideways.
- “Extreme fear” sentiment in altcoins like XRP has historically preceded significant rebounds.
Weak and directionless—that’s how the cryptocurrency market currently stands, reporting $289.05 million in liquidations in one day. Despite the general behavior, Bitcoin managed to stay above $90,000, but selling pressure was evident in the exchange-traded products: Bitcoin ETFs had net outflows of $194.6 million on Thursday, and Ethereum ETFs reported outflows of $41.6 million.
Technical analysis indicates that the market correction might be stabilizing, but directional conviction is scarce. In this regard, Ali Martinez pointed out a key accumulation area: at least 300,678 BTC were bought near $84,400, creating a support in that zone which is currently being defended.
For his part, Michael van de Poppe agrees that BTC is trapped in the same price range. If the $91,500 support holds, he anticipates an attempt to reach $100,000 next week. But he warns that a breakdown could lead BTC to re-evaluate the $85,000 level, forming a potential “double bottom.”
Altcoins and the Sentiment-Driven Opportunity
Analyst Ali Martinez establishes that for Ethereum, $4,800 is the level that must be decisively reclaimed. Only by conquering that zone would the path open toward $6,800 and, potentially, $8,800.
Meanwhile, some altcoins are experiencing extreme uncertainty. Santiment data reveals that XRP fell 31% in two months and faces the highest level of fear since October. Typically, similar fear spikes have preceded strong rebounds; for example, the panic on November 21st was followed by a 22% rally in three days, suggesting that another sentiment-driven opportunity might be brewing.
The memecoin segment did not escape the general weakness, falling 4.5% in the last 24 hours. Martinez also identified $0.20 as the key resistance for Dogecoin (DOGE), where a cluster of approximately 11.7 billion DOGE is grouped.
In summary, this technical analysis of the current market situation underscores the importance of identifying both support and resistance levels to navigate the current volatility.
