Bitcoin at a crossroads: Will BTC hit $90K, or is a deeper dip ahead?

• Bitcoin futures traders are de-risking, unwinding positions at breakeven.
• Is another pullback imminent before the next leg up?

Bitcoin [BTC] derivatives Open Interest (OI) has dropped to a five-month low as traders de-risk amid volatility. In less than two weeks, approximately $14 billion in positions have been closed.

At press time, Bitcoin has rebounded 10% from its $78,000 low, indicating supply-side liquidity absorption. A move to $86,729 would shift 591.93K addresses holding 379.52K BTC into profit.

Source: IntoTheBlock

To reclaim $90K, Bitcoin must absorb incoming liquidity before it transitions into resistance. However, persistent extreme fear and macro uncertainty continue to weigh on risk appetite.

With only 22K BTC outflows from all exchanges at $86,103 – the lowest in a week – retail participation remains muted, while institutional capital stays sidelined.

According to AMBCrypto, subdued FOMO signals it’s too early to confirm a strong holding pattern, keeping the possibility of a near-term breakout in question.

Is Bitcoin facing another pullback before the next leg up?

In the near term, $86,669 stands as a critical resistance level, with $51 million in liquidation risk if breached. 

Source: Coinglass

A significant cohort of HODLers would move ‘in the money’ near this threshold, while short-term holders (STHs) remain susceptible to profit-taking, making price stability a crucial test.

Weak spot demand, coupled with continued de-risking in derivatives, leaves Bitcoin exposed to another pullback before a potential move toward $90K.