Latest market dynamics: According to the latest on-chain data, BTC briefly fell below $87,000 during a sharp decline, then slightly rebounded to $89,000, but Bitcoin fell over 7% in the last 24 hours, with the entire market experiencing significant turbulence. At the same time, according to CoinGlass data, the liquidation amount in the derivatives sector reached $1.5 billion in the past day, indicating a phenomenon of massive capital withdrawal across the industry. Furthermore, the latest IntoTheBlock indicators show that over 12% of BTC addresses are currently in an 'underwater' state, the highest level since last October.
Future estimates and potential risks
• Short-term trend:
– If the market cannot obtain effective support in the short term, Bitcoin may further test the lower range, potentially breaking below the key support of $87,000.
– However, if market sentiment warms up and capital intervenes to stabilize the situation, BTC may seek a rebound around $89,000, laying the groundwork for subsequent consolidation.
• Medium to long-term outlook:
– As the amount of derivatives liquidation continues to rise, the market may enter a deeper adjustment period. Investors need to pay special attention to the internal fund flows of institutions and external regulatory dynamics.
– More than 12% of addresses are in a state of loss, indicating that the downward pressure on the market remains significant, and volatility may intensify in the near future.
– In the long term, only platforms with solid fundamentals, technological innovation, and security measures can attract capital back and stabilize market sentiment.
My insights and investment reminders
Stay calm: Currently, market sentiment is extremely low, with massive capital withdrawals and crashes leaving many investors with significant losses. Whether new or experienced, one should remain rational and avoid blindly chasing rises or selling during dips.
Multiple verification: Use blockchain explorers to verify the authenticity of transactions. Do not rely solely on surface data, and remember that those highly attractive short-term rebound signals may just be temporary illusions.
Risk management: In the face of severe market volatility, appropriately reducing positions, entering and exiting in batches, and managing funds well are important means of protecting capital.
Market turning point: The next few days will be an important observation period for the market. If BTC can stabilize around $89,000, it may attract some institutional capital back; however, if the support is not solid, a larger adjustment may occur in the short term.
In summary, the recent Bitcoin crash and the phenomenon of over 12% of addresses being underwater reminds us once again: In this volatile and risky crypto market, rational analysis and strict risk management are the only tools to protect one’s capital.
#BTC $BTC
