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Bitcoin (BTC) started the new week with a decline and lost most of the gains made after the FED's interest rate cut last week.
At this point, BTC dropped below $89,000, drawing more attention to further declines in the market.
Ethereum (ETH), despite overall market caution, remained relatively resilient and defended its recent gains better than Bitcoin, supported by demand and low selling pressure.
Crypto analyst Ali Martinez, in his analysis, said, “Breaking the $89,000 level, the first support is at $86,000. If this level also breaks, a deeper correction could occur.”
Market maker Flowdesk, assessing the decline in Bitcoin, pointed to a significant decrease in liquidity as a reason for the drop.
Flowdesk analysts, noting the reduced demand and liquidity following the FED’s 25 basis point rate cut, believe these factors are behind the pullback in Bitcoin and altcoins.
Although there are pullbacks in Bitcoin and the overall crypto market, on-chain data also indicates a quiet accumulation flow.
According to Glassnode, while Bitcoin continues to struggle with sharp declines, digital asset treasury (DAT) firms have resumed Bitcoin purchases. Previously, the halt in DATs’ acquisitions was cited as one of the main factors for Bitcoin’s stagnation throughout the fall.
#BTC/ETHConsolidationMarket $BTC $ETH