Bitcoin's price has dropped below $90,000, marking its lowest point in a month. This week, the cryptocurrency has fallen over 7% and is currently hovering around $88,948. However, according to PlanB, creator of the Bitcoin Stock-to-Flow (S2F) model, these price corrections are normal in Bitcoin's growth cycles. PlanB compared the current market cycle to the 2016-2017 bull market, highlighting that Bitcoin had several significant price drops before reaching new all-time highs.

On the positive side, on-chain data shows that long-term holders are buying more Bitcoin during this dip, indicating confidence in its long-term value. However, blockchain intelligence firm Arkham reported that BlackRock has moved $150 million worth of Bitcoin to Coinbase Prime, suggesting that institutional investors may be taking profits and adding to selling pressure.

BitMEX founder Arthur Hayes warned investors to wait before putting their money in crypto, suggesting that political and macroeconomic factors, such as the outcome of US president Donald Trump's budget and debt ceiling increases, could affect Bitcoin's price. The Relative Strength Index (RSI) for Bitcoin is close to oversold territory, indicating a potential price rebound if buyers step in. However, the Moving Average Convergence Divergence (MACD) indicator has confirmed a bearish divergence in Bitcoin's price action.



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