The post Cryptocurrency Exchange Analysts Explained: “Bitcoin Should Never Go Below This Level!” appeared on BitcoinEthereumNews.com.

A new report from cryptocurrency exchange Bitfinex has addressed Bitcoin’s sharp recovery last week, falling to $89,698 before rising above $100,000 again. The drop below $90,000 triggered a wave of forced liquidations, with $818 million liquidated on January 13, including $592 million in long positions. The report highlights that Bitcoin’s short-term owner cost floor, estimated at $88,400, played a crucial role in halting the sell-off and supporting the recovery. Historically, this cost floor has acted as a reliable support level, with last week’s lows aligning closely with this threshold, triggering renewed buying activity. However, Bitfinex warned that a drop below this key level could put further pressure on prices and potentially lead to additional selling. The report attributes this rise to aggressive spot market buying, particularly on U.S.-based trading platforms, as reflected by a sharp increase in cumulative spot volume. This buying pattern mirrors previous activity related to MicroStrategy’s acquisitions and Bitcoin ETF purchases, and suggests continued institutional interest in Bitcoin. While the increase in spot buying is providing momentum, Bitfinex noted that this demand may take time to renew. There may be a brief pullback before Bitcoin resumes its upward trend. Despite short-term fluctuations, Bitfinex noted Bitcoin’s resilience and continued demand, supporting its strength in the medium term. The report underlined that key levels, such as a short-term conservative cost floor, are important in maintaining market stability. “Bitcoin’s ability to recover from critical levels and attract sustained institutional demand underscores its solid fundamentals,” the report said. *This is not investment advice. Follow our Telegram and Twitter account now for exclusive news, analytics and on-chain data! Source: https://en.bitcoinsistemi.com/cryptocurrency-exchange-analysts-explained-bitcoin-should-never-go-below-this-level/

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Filed under: News - @ January 21, 2025 6:22 am