The value of Bitcoin has dropped dramatically, going below $89,000 after failing to hold important support levels. The recent fall has sent investors into panic, especially as short-term holders (STHs) are expected to sell.
The SOPR metric, measuring if STHs are selling at profit, remains below the worrying 1.0 point. This would mean that a majority of the traders are offloading their BTC at a loss. So long as the SOPR remains low, selling pressure is likely to increase and create additional losses.
Despite the decline of Bitcoin by 8% over the last 24 hours, exchange data shows no massive outflows. Exchanges have lost just 157 BTC, which is worth around $14 million, which means panic selling has not yet begun. This shows that investors may be waiting on their investments, expecting a potential turnaround.
Bitcoin is at $88,449, the lowest it has been since November 2024. The subsequent key support price is at $87,041. If Bitcoin can hold above this price, it may attempt to bounce back to $89,800 and possibly even $92,005. But if the price dips below support, it will dip to $85,000, signaling a deeper downtrend.
Investors are keenly observing market trends as Bitcoin struggles to gain momentum. The coming days will play a pivotal role in determining if BTC will recover or post losses.
