Bitcoin Traders Eye $92,000 Support Level as Derivatives Metrics Show Weakening Sentiment

Weekend Correction Tests Key Support

Bitcoin experienced a 3.4% price decline over the weekend as investors reduced exposure to risk assets amid escalating global sociopolitical tensions and China's announcement of its slowest economic growth since 2022 ^[1]. The digital asset tested the $92,000 support level, resulting in $215 million in forced liquidations of leveraged long positions ^[1].

Despite the correction, Bitcoin managed to close the week at $93,638 after briefly pushing toward the $98,000 resistance level ^[2]. The cryptocurrency quickly reclaimed the $93,000 level following the initial downturn ^[1].

Market Tensions and Macroeconomic Headwinds

US President Donald Trump's announcement of additional import tariff proposals targeting eight European countries intensified market uncertainty ^[1]. The tariffs, aimed at pressuring negotiations over Greenland's acquisition from Denmark, have prompted European nations to discuss retaliatory measures on US product imports ^[1].

With US markets closed Monday for a national holiday, investors shifted toward cash positions and precious metals as safe havens ^[1]. The Euronext 100 Index dropped 1.6%, while gold prices surged above $4,650 for the first time ^[1]. China's economy grew 4.5% year over year in the last quarter of 2025, down from 4.8% in the previous quarter, with strong exports offsetting weaker consumer spending and business investment ^[1].

Derivatives Metrics Signal Waning Institutional Interest

The Bitcoin futures annualized premium remained near the neutral-to-bearish 5% level, suggesting that demand for leveraged bullish positions was unaffected by the failed attempt to break above $98,000 ^[1]. However, the lack of enthusiasm in derivatives markets may indicate diminishing interest from institutional investors ^[1].

Bitcoin spot exchange-traded funds recorded $395 million in net outflows on Friday, further dampening trader sentiment ^[1]. The Bitcoin options delta skew at Deribit jumped to 8%, indicating that put options are trading at a premium compared to the typical neutral range of -6% to +6% ^[1]. This shift demonstrates that professional traders are demanding higher premiums to provide downside protection ^[1].

George Saravelos, head of FX research at Deutsche Bank, noted that European countries own $8 trillion of US bonds and equities, almost twice as much as the rest of the world combined ^[1]. He suggested that Europe may no longer be as willing to support the US dollar if the western alliance becomes existentially disrupted ^[1].

Critical Levels and Technical Outlook

Traders are closely monitoring the $91,400 support level, which bulls must defend to maintain bullish momentum ^[2]. Losing this level could give bears renewed confidence to push prices lower toward $87,000, which would act as a gateway to the major $84,000 support level ^[2]. Breaking below $84,000 could open the low $70,000 area for testing ^[2].

On the upside, bulls are attempting to regain $94,000 as short-term support ^[2]. Success in holding this level could lead to another challenge of the $98,000 resistance zone, with a potential move toward $103,500 if sustained above that threshold ^[2]. The next major resistance zone lies between $106,000 and $109,000 ^[2].

Network Activity Raises Concerns

Declining Bitcoin network activity has raised additional concerns among market participants ^[1]. Daily active addresses fell to 370,800, representing a 13% decrease from two weeks prior ^[1]. Healthy blockchain demand is considered essential to support investment in mining, as Bitcoin miner revenue consists of a fixed 3.125 BTC block reward plus transaction fees ^[1].

The combination of weak derivatives metrics, declining network activity, and macroeconomic uncertainties has created doubts about whether the $92,000 support level will hold as investors remain cautious about a potential global economic slowdown ^[1].