Pakinomist – (BTC), the largest cryptocurrency, finally falls below $90,000, losing $118 billion in capitalization in 12 hours. However, CryptoQuant’s verified author does not expect this decline to go much lower as short-term holders remain in profit.

Bitcoin (BTC) price at $88,000: Next (LON:) key level to trace

In the short term, the Bitcoin (BTC) price may find its local “floor” of $90,000. However, entering the “breathing space” of the $88,000 zone will not surprise the pseudonymous cryptocurrency analyst Percival, CryptoQuant’s verified author.

One such forecast was shared by the analyst in his latest CryptoQuant QuickTake publication.

He stressed that a combination of factors showed that strong “selling pressure” from the last few days of 2024 extended to the start of the new year. He also noted that Bitcoin ETF flows fell, while Open Interest also recorded a massive drop.

At the same time, short-term Bitcoin holders may not be bothered by the current decline:

While “odds favor the $90,000 floor,” the expert recommends that all traders look at $88,000, as this level is crucial for short-term holders.

$700 million liquidated in worst session for bulls

The speaker also does not see the possibility that the Bitcoin (BTC) price can go deeper even if it hits $88,000.

Meanwhile, Bitcoin (BTC) is in the midst of its worst selloff in three weeks. The net volume of crypto liquidations exceeds $700 million, CoinGlass data shows.

Of this sum, $300 million has been wiped out in the last four hours. Bitcoin (BTC) fell to $89,500, but then rebounded to $92,500, bringing pain to both bulls and bears.