Bitcoin Price Falls Below $88K, Causing Over $1.3B in Liquidations

Bitcoin's price has dropped over 7% in two days, falling to around $87.7K after breaching the support level of $91K. Currently, it is testing a liquidity level at $89.3K, which may not hold.

Key points:

• If Bitcoin closes below $91K consistently, a reversal pattern may confirm, potentially leading to a drop to $77K.
• The crypto market saw over $1.3 billion liquidated in 24 hours, primarily affecting long positions in BTC and Ether.
• More than 362K traders were liquidated, with the largest single order on Binance being $20 million in BTC/USDT.
• Whale investors are taking profits, increasing BTC supply on exchanges by about 17,185 coins in the last week.
• Demand for US spot BTC ETFs has declined, with a cash outflow of approximately $516 million recently.
• Metaplanet Inc. acquired 135 BTC for $13 million and now holds 2,235 BTC.

The current 2024/2025 bull cycle is challenged by institutional interest, geopolitical tensions, and evolving regulations. This environment has shifted some investors towards gold, which has reached a new weekly all-time high.

The anticipated crypto rally in 2025 may depend on whale investor activity and potential inclusion of BTC in the US Sovereign Wealth Fund. The end of the four-year BTC bull cycle will be marked by the monthly RSI exceeding 90%, an event not seen in two years.