Bitcoin Price Drops 2% As Glassnode Warns Of Plunge To $88k

The Bitcoin price slid 2% over the last 24 hours to trade at $111,33 as of 3.30 a.m. on trading volume that slumped 31% to $50.47 billion.

There may be worse to come, according to Glassnode, which warned that if the price can’t climb back above its cost basis at $113k, a plunge to $88k could happen as long-term holders begin to reduce positions.​

If the market finds enough buyers, some analysts say a rebound toward $113,000 and higher could still be possible, but demand remains weak for now.​​

Trading volume has also slowed as investors step back, waiting for clearer signs.

Bitcoin On-Chain Signals Show Mixed Picture

On-chain data tells a story of caution but also some long-term confidence. Exchange reserves for Bitcoin hit new lows as investors withdrew coins instead of selling, suggesting that a chunk of holders are not eager to exit, even in tough times.

Bitcoin Exchange Reserve Source: CryptoQuant

In October, more than 200,000 BTC left trading platforms, shrinking available supply and making each remaining coin a bit more scarce.​

Still, the selling by nervous traders and weak demand has hurt the BTC price across all major exchanges. Glassnode noted that a failure to reclaim the $113k level could increase the risk of long-term holders turning into sellers as fear grows. As leverage gets washed out of the market after the October crash, whales and institutions remain cautious.

Signs of new accumulation are there, especially with ETF and custodial flows still positive, but these haven’t reversed the overall downtrend just yet.​

Sentiment is stuck in neutral. Investors have not fully capitulated, and some are waiting for buying signals. Fed Chair Jerome Powell said on Oct. 29 that a December interest rate cut is far from certain, adding more uncertainty for risk assets like Bitcoin.​

BTCUSD Technical Analysis: Strong Support Tested, Bear Flag Threatens

Looking at today’s price chart, Bitcoin is moving inside a tight range, closing just below resistance at $113,000 and hovering near support at $105,000. Recent price action shows strong resistance repeatedly holding back moves higher.

BTCUSD Analysis Source: Tradingview

If sellers push price below the $105,000 level, it could quickly test the $95,800 low, and then possibly break further down toward $88,000, Glassnode’s warning target.​​

Momentum indicators point to more downside risk. The Relative Strength Index (RSI) is at 44.89, showing weak buying pressure and no sign of a rally. The MACD remains negative, with the MACD line well below the signal line, confirming the bearish trend. Price action also shows a “bear flag” pattern, a technical signal that often leads to further drops if support breaks.​​

Investors should watch $105,000 carefully as a critical zone. If buyers can hold this level, the Bitcoin price could attempt another move toward resistance and possibly retest $115,000. If this support fails, the $88,000 area becomes the next major target, and sellers could take control quickly.​

Price Prediction: Downside Risks Remain If Support Breaks

Most price models, including Glassnode’s latest data, suggest that Bitcoin is at risk of further downside, especially if it can’t move back above $113,000 soon. October’s prolonged selloff wiped out leveraged traders and rattled markets, and without new demand, the price could slide toward $88,000 before finding real support.​

A rebound is possible if new buyers step in. There are signs of accumulation, especially with exchange reserves falling and some big investors holding strong. Others warn that continued risk aversion, especially if more bad news hits, could keep pushing the price lower.​

For now, Bitcoin remains stuck below key resistance, with sellers in control. Watch the $105,000 support closely. If it holds, a rebound could start; if not, $88,000 may be next on the charts.​​

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