Why does BTC still have a 9% decline over 7 days after breaking through 89,000

According to the latest news, BTC has just broken through the 89,000 USDT level, with the current price at 89,009 USDT. This number looks good, but the market’s actual performance is not that simple.

Contradictory Phenomena in Short-Term Price Movements

The seemingly strong breakout appears somewhat weak over a longer time frame. Here’s an interesting comparison:

This situation is quite typical: short-term buying pushes prices higher, but the overall trend is still digesting previous gains. The breakthrough at 89,000 is more like a rebound rather than a trend reversal.

Market Fundamentals Remain Steady

Despite short-term fluctuations, BTC’s market position remains unshaken:

• Market Cap: $1.77 trillion, accounting for 59.16% of the crypto market, still the absolute market leader
• Market Liquidity: 24-hour trading volume of $5.719 billion, up 19.04% from the previous day, indicating increased participation
• Supply: Circulating supply of 19,978,909 BTC, representing 95.14% of the total supply, with supply essentially locked

The key point is this trading volume data. Although prices are adjusting, trading volume has increased, which usually indicates active market interaction rather than apathy.

What Does This Position Mean Now

Breaking through the 89,000 level can be interpreted in two ways. One is bearish: a 7-day decline of 9% suggests insufficient upward momentum. The other is bullish: maintaining a 59% market share during this correction and increasing volume indicate stable support at the bottom.

From a technical perspective, the 0.73% rise in 1 hour and the 1.12% decline in 24 hours create a tug-of-war situation. This often signals that a clear direction may be emerging, but currently, the market is still consolidating.

Summary

BTC breaking through 89,000 is a noteworthy event, but it shouldn’t be over-interpreted. The short-term rally might be a rebound from previous declines, and the real trend will depend on the next few days’ performance. However, from a fundamental standpoint, the market cap share, trading volume, and stable supply all suggest no deterioration, giving bulls reason to continue. The key follow-up points are whether BTC can hold above 89,000 and whether this rebound can extend into the weekly timeframe.