Asia Morning Briefing: Market Turns Defensive as BTC Loses Its Bid

The cryptocurrency market is showing signs of weakness as Bitcoin's demand diminishes, leading to defensive positioning among traders. Bitcoin is currently priced around $92,000, reflecting a general bearish sentiment following a notable decline earlier in the week. Analysts from CryptoQuant note that the core demand wave supporting the market has passed, with ETF accumulation slowing and a significant drop in institutional purchases this year. Short-term Bitcoin holders are facing losses at an accelerated rate, reminiscent of previous downturns. Critical support levels have been identified, with the Active Investor cost basis near $88,600 acting as a pivotal point; a drop below this could signify a shift into a more pronounced bear market. Conversely, Ether is trading around $3,038, closely tracking Bitcoin's performance. As market sentiment grows cautious, the effectiveness of potential support levels will be tested in the coming weeks, determining whether buyers can regain control or if a deeper correction is forthcoming.

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