After falling to the $89,000 range, Bitcoin is now trying to reclaim the $95,000 resistance. The fall from the historic high of $126,000 has led to a sharp increase in implied volatility and short-term selling pressure.
Reports suggest that short-term holders are experiencing about $523 million in realized losses per day, the highest level since the FTX crash.
Spot trading volume has declined to about $83.8 billion, but the derivatives market is more active: futures trading volume has increased by 15% and the index of futures open interest has reached $67.4 billion. This suggests that traders are either hedging or relying on short positions rather than buying outright.
Analysts believe that the recent selling pressure has turned the $95,000-$97,000 area into a significant resistance. If this range is not broken, a retest of $90K is likely
A consolidation above $95K and then a break above $97K is essential to change market sentiment. Otherwise, selling pressure and volatility could intensify the downtrend.
