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Bitcoin traders are watching the $88,880 area as a key confirmation level after CryptoQuant data showed the market price near $80,874 on May 5. The level is close to the realized price for the 3- to 6-month holder cohort, which is near $88,879.
The chart, shared on X, shows why traders remain cautious despite calls that Bitcoin’s bottom may already be in. CryptoQuant said confirmation requires Bitcoin to clear $88.88K and hold above it.
A brief move above that level would not be enough, according to the post. Bitcoin must avoid a wick through the area or a failed retest. The market now faces one pivotal question: can Bitcoin reclaim $88.88K and hold it long enough to confirm stronger demand?
The $88.88K level represents the average cost basis of recent Bitcoin buyers. If price moves above it and holds, that buyer group would return to profit. This shift could reduce the first layer of sell pressure. Traders often watch realized price bands because holders near breakeven may sell when price recovers.
The chart also shows other key levels above the current market. The 12-month to 18-month cohort sits near $93,446.
Meanwhile, the 6-month to 12-month band stands much higher at about $111,851. These levels could act as resistance if Bitcoin continues its recovery. For now, the data shows Bitcoin has bounced from its recent low. Still, the move has not fully confirmed a stronger trend reversal.
Also Read: Bitcoin Fund Holdings Rise as Ethereum Demand Lags Behind
Short-term market pressure has also increased across ETFs and derivatives. The text shows $268 million in net outflows from American Bitcoin spot ETFs.
At the same time, nearly $270 million in long positions were liquidated within 24 hours. That figure points to weaker short-term positioning after the latest market drop.
The OKX long/short ratio also fell sharply. It declined from 1.20 to 0.27 in ten days, showing a major shift in trader exposure. Retail activity also showed signs of slowing. Coinbase’s quarterly revenue dropped 31% compared with the first quarter of 2025.
Robinhood also reported a 47% fall in crypto revenue. Together, these figures show lower retail participation during the current market phase. Even so, the slowdown in spot ETF flows does not automatically confirm a bearish phase. The market remains between short-term pressure and longer-term macro expectations.
Alongside ETF and derivatives pressure, several macro signals continue to support Bitcoin’s broader narrative. A weaker US dollar can raise interest in scarce alternative assets. The continued rise in US debt has also drawn attention from institutional investors. Some investors monitor Bitcoin as an asset linked to long-term monetary devaluation concerns.
Market focus has also shifted toward the US Federal Reserve. Traders are watching future policy direction after Jerome Powell. The text notes growing speculation around Kevin Warsh possibly leading the Fed after Powell. Some market players link that scenario to expectations for looser monetary policy.
At the same time, some investors have raised the possibility of a future US strategic Bitcoin reserve. This idea remains part of the wider market discussion. As a result, the ETF slowdown has not yet removed Bitcoin’s structural momentum from focus. Each Fed statement and institutional move could now shape the next sentiment shift.
Bitcoin’s recovery remains tied to the $88.88K confirmation level, where recent buyers could return to profit. ETF outflows, long liquidations, and weaker retail activity add pressure, while macro signals keep broader interest alive. Traders now await a sustained breakout before stronger confidence returns.
