Bitcoin Dips Below $89K: Is a Deeper Pullback Coming?

Bitcoin’s volatility continues to shake the crypto market. After surging 10% to $93,604 yesterday, BTC reversed course, dropping 5% to $89,100 today. This pattern of sharp rallies followed by steep pullbacks caught traders off guard, but the signs were there.

One major warning? The Bollinger Bands. Despite the pump, Bitcoin failed to sustain a breakout above the middle band on the daily chart. Instead of building momentum, the price slid lower, triggering a fresh wave of liquidations. In the past 24 hours, $1 billion in leveraged positions were wiped out—a harsh lesson in risk management.

With Bitcoin now trading below the mid-range, market sentiment has turned bearish. It’s not a drastic downturn, but the structure is weakening. If this trend continues, the lower Bollinger Band at $83,400 could be the next key support level. Sellers maintain the upper hand, while buyers struggle to gain control.

Still, crypto markets are known for unexpected reversals. A decisive move back above the middle band could shift momentum. Until then, Bitcoin remains under pressure, with traders watching closely for the next big move.