Crypto: Bitcoin Price Holds $92k, Proving Bulls See ‘buy The Dip’ Opportunity

Bitcoin’s drop to $92,000 was a result of leverage being flushed out and overoptimistic investor sentiment being reset. The real key is whether bulls buy the dip.

Bitcoin (BTC) saw a sharp pullback during the Asian market open, shaking out leveraged positions without breaking its market structure. While sentiment cooled rapidly, onchain and derivatives data suggest that the move resembles a structural reset rather than a deeper trend reversal.

$233 million in Bitcoin long liquidations flushed leverage while spot selling stayed muted, pointing to a reset, not panic distribution.

Sentiment collapsed to 45% from 80% as open interest fell to $28 billion, confirming a mild risk-off unwinding.

Bitcoin slid to $91,800 from $95,300, a 3.7% drop, during the Asian market open on Monday, triggering about $233 million in long liquidations over the past 24 hours. The move followed a period of elevated bullish positioning, leaving the market open for a downside sweep.

Bitcoin researcher Axel Adler Jr. noted that Bitcoin’s Advanced Sentiment Index fell sharply to 44.9% from 80%. The index, which integrates volume-weighted average price (VWAP), net taker volume, open interest and volume delta, had reached extreme bullish levels Tuesday-Thursday, aligning with a local high near $97,000.

The drop below the neutral 50% threshold signals a shift toward weaker risk conditions. According to Adler, price stabilization would require a sustained recovery above 50%, while a further slide toward the 20% zone could increase the odds of a deeper correction.

BTC open interest also declined back to its yearly opening levels near $28 billion. This suggests that leveraged positions were unwound rather than new shorts aggressively entering the market. Aggregated futures cumulative volume delta (CVD) remained slightly elevated relative to open interest, while spot CVD stayed flat, indicating limited spot-driven selling pressure.

Related: Bitcoin futures OI rebounds 13% as analysts see cautious return of risk appetite

From a technical standpoint, Bitcoin continues to print higher highs and higher lows on the daily chart. The $92,000 to $93,000 region aligns with a daily order block demand zone and a retest of the rolling monthly VWAP support, making it a plausible higher-low area before another upside attempt toward $100,000.

Source: CoinTelegraph