Bitfinex: BTC once fell below $91,000 and is at a critical moment

Bitcoin briefly fell below $91,000, and is at a “critical juncture” after trading in a tight range for nearly 90 days, analysts at cryptocurrency exchange Bitfinex said.

In a Feb. 24 Bitfinex Alpha report, analysts said that Bitcoin has traded between $91,000 and $102,000 over the three months that market momentum has stalled, and “remains at a critical juncture after nearly 90 days of consolidation.”

“The momentum required for a sustained breakout has been lacking, which has led to a period of contraction and consolidation across nearly all major crypto assets,” the analysts said.

According to Coingecko, Bitcoin has fallen more than 4.5% in the past 24 hours, hitting a low of just under $91,00 — its lowest price since late November. The broader cryptocurrency market has also fallen 8% in the past day, from more than $3.31 trillion to around $3.09 trillion.

CoinGlass data showed that the plunge in the cryptocurrency market triggered a series of liquidations, with the amount of liquidations exceeding US$961.65 million in the past day, including US$891.52 million in long bets and US$70.14 million in short bets.

Long Bitcoin bets accounted for the lion’s share of liquidations, with more than $277 million liquidated in the past day.

Bitcoin long bets led liquidations in the cryptocurrency market over the past day, with total liquidations approaching $1 billion. Source: CoinGlass

Bitfinex analysts said that Bitcoin is becoming increasingly correlated with traditional markets, and that a major factor affecting the stagnant cryptocurrency market is "a similar stagnation in traditional financial markets" caused by "macro uncertainty."

The S&P 500 has fallen 2.3% over the past five trading days, while the Nasdaq Composite has fallen 4% over the same period. Bitfinex said that “broader equity market suppression has impacted risk assets, including cryptocurrencies.”

The analysts added that institutional demand for Bitcoin through spot exchange-traded funds has also “slowed significantly,” with outflows totaling $552.5 million per trading day in the week ending February 21.

Bitfinex said weakening consumer confidence and further rising inflation expectations pose challenges to the overall U.S. economy.

The firm noted that a Feb. 21 University of Michigan consumer survey found that U.S. consumer confidence fell 10% in February from January to its lowest level in 15 months, reflecting "growing concerns about inflation and economic uncertainty" that could slow spending.

Bitfinex analysts also said that a series of tariffs proposed by President Trump “are adding to inflationary pressures” and offsetting some of the progress made towards deflation over the past two years.