Bitcoin has demonstrated remarkable resilience, maintaining its position above the $95,000 mark despite facing significant selling pressure.
This marks one of the largest daily sell-offs since the collapse of Three Arrows Capital (3AC) in 2022, yet Bitcoin continues to trade near $100,000.
Market Conditions and Selling Pressure
Bitcoin experienced a brief dip to $94,726 on February 9, but has since rebounded. This sudden shift follows the most intense daily selling activity seen since the 3AC collapse, a period that caused massive disruptions in the cryptocurrency market.
Despite this, Bitcoin’s ability to hold steady suggests “seller exhaustion,” according to André Dragosch, head of research at Bitwise Europe.
Potential Risks with $93,000 Support
However, Bitcoin’s price momentum heavily relies on maintaining support at $93,000. A breach below this level could trigger a liquidation of over $1.7 billion in leveraged long positions across all exchanges, potentially driving the price down further.
Analysts are also wary of escalating global trade tensions, particularly between the U.S. and China, which could add to market volatility.
While Bitcoin is often seen as a hedge against traditional finance instability, these geopolitical concerns continue to weigh on investor sentiment. If Bitcoin drops below $93,000, it could set off a cascade of liquidations, with further downside potential to $91,500 or even $90,000.
Bitcoin’s ability to hold its ground above $95,000 during a period of significant market stress underscores its strength, but it faces key levels of support that must hold to avoid further volatility.
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