Selling Pressure Eases, Is Bitcoin Ready to Stop Falling?
Bitcoin's price stabilized around US$88,000 on Tuesday, after previously plunging to a seven-month low that triggered massive liquidations and wiped more than US$1 trillion off the crypto market's value. However, sentiment remains cautious: Bitcoin still has the potential to post its worst month since 2022, and Bitcoin-based ETFs are expected to post their largest outflows since their launch.
Several market signals are starting to show hope. In the options market, hedging (put) costs have fallen sharply, indicating that fear of another crash is easing. Bitcoin's 14-day RSI indicator is at 32, approaching the oversold zone, while implied volatility has returned to April levels. Analysts believe this indicates market stress is easing and some players are starting to believe that a bottom has temporarily formed.
Although November saw outflows of more than US$6 billion from global crypto products, most investors remain in the black. The withdrawal of approximately US$3.7 billion from US Bitcoin ETFs represents only about 3% of the total US$110 billion in assets under management. This means that selling pressure is indeed significant, but it hasn't yet led to total panic—leaving room for a rebound scenario if sentiment improves. (asd)
Source: Newsmaker.id
