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According to CryptoQuant, the price of Bitcoin will rebound from here: Here are 2 Reasons! - Coin Newsletter
According to the analysis made by CryptoQuant, Bitcoin's price breaking the $90,000 support caused a sharp decline in the cryptocurrency market.
Crypto analysis platform CryptoQuant noted that there was a significant decline in the market after Bitcoin broke the important support level of $90,000. The analysis emphasized that this decline was caused by both internal and external factors. Internally, the hacking incident in Ethereum shook the crypto market, while externally, the customs tariffs imposed by the Trump administration and the resurgence of inflation led to the depreciation of risky assets.
According to CryptoQuant analysts, after breaking the $90,000 level of Bitcoin, the price continued to decline, and the cryptocurrency is currently at a critical crossroads to decide whether it will experience an uptrend or a downtrend.
At this point, there are two important reasons why the price may recover. First, it is noted that large-scale long positions are being liquidated. Today's liquidations reached the highest level since November, causing a long position worth $245 million** to become liquid. Such large-scale liquidations can reduce the depth of the order books, leading to price recoveries even with low volumes, the analyst said.
Secondly, it was emphasized that the average entry price of whale investors holding Bitcoin for less than six months is $89,600. It was mentioned that this average price could function as a psychological support level and that the price could rise again as long as these whales do not sell off at this level.
However, according to the analysis made, the outlook is not entirely optimistic due to the negative conditions in the market. In particular, it was warned that a sharp decline could occur if additional selling pressure pushes the support level even lower.
It was stated that it may be appropriate to hedge short positions in futures or dispose of some assets for proactive risk management in order to effectively manage risks.