Bitcoin has managed to hold on to around $92,000 after a brief decline earlier this week, reinforcing the argument that many traders see the drop as a buying opportunity, not a signal to exit the market.
At 2:43 PM this afternoon, Bitcoin opened at $91,002 and is up 0.04% since it opened early Tuesday in Asian trading
The drop from around $95,300 to $91,800 triggered an estimated $233 million in long liquidity, as highly leveraged traders were forced to close their trades.
However, this move is seen more as a ‘cleansing’ of the market than a sign of major Bitcoin weakness.
Market sentiment is also calmer now than before. Previously, many investors were overly confident that the price would continue to rise.
Now, confidence has waned but this is actually considered healthier for the market in the long term.
Market data shows that active leveraged trading volume has fallen back to the levels seen at the beginning of the year, meaning that many high-risk traders have exited.
At the same time, few are betting that prices will fall further.
In terms of price charts, the area around $92,000 to $93,000 is seen as a key support zone.
In fact, around $250 million in new long positions have been opened near $92,000, indicating that buying interest is still strong.
If Bitcoin can stay above $90,000, the opportunity to rise back to $100,000 is still open, especially when the US market returns to activity.
