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Michael Burry Sees Bitcoin Collapse: A 65k Death Spiral Looms

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The warnings from Michael Burry suggest a fundamental breakdown in the speculative momentum currently supporting BTC prices. Michael Burry's Dire Bitcoin Warning: A Cynical Look at the Impending Crypto Reckoning 🏃 Here we go again. Just when the market seemed to find its footing after last year’s rollercoaster, Michael Burry—the oracle of the 2008 financial crisis—is back. And his message for Bitcoin isn't exactly a lullaby for bullish investors. Days after his latest stark warning, Bitcoin is already proving his skepticism warranted. We’re currently hovering near $65,850 , a painful 50% plummet from its October highs of $126,000 . This isn't just a dip; it's a structural shake-up, according to Burry, and he's not one to be ignored. Falling below critical support levels may effectively shut corporate B...

XRP Price Holds Near Binance Support: The 0.61 CVD Anchor or Siphon Trap

The 0.61 CVD correlation indicates that XRP price movements are structurally anchored in volume flows
The 0.61 CVD correlation indicates that XRP price movements are structurally anchored in volume flows

XRP's $1.90 Stand: Is This a Binance-Backed Base or Another Institutional Siphon?

🏢 The digital asset market, never one for calm waters, is once again watching a pivotal battle unfold for XRP. After slipping below the psychological $2.00 mark, XRP is now attempting to stabilize precariously above $1.90. This recent breakdown has injected a fresh wave of uncertainty, leaving seasoned traders questioning whether this is merely a temporary leverage flush or the prelude to a far more ominous downside move.

XRP Price Trend Last 7 Days
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The analyst community remains sharply divided, a typical symptom of genuine market indecision. Some camps are bracing for a bearish continuation, arguing that the recent rally’s steam has entirely dissipated. Others, perhaps the eternal optimists, suggest the market is simply clearing out over-leveraged positions, priming XRP for a subsequent rebound. Regardless of the prevailing sentiment, the upcoming sessions are unequivocally critical, poised to dictate XRP’s short-term trajectory and, by extension, offer insights into broader market health.

The structural alignment of XRP price and volume behavior points toward a looming supply shock
The structural alignment of XRP price and volume behavior points toward a looming supply shock

🏢 Adding a crucial layer of granular detail to this macro picture, a recent report from Arab Chain has illuminated the intricate flow dynamics on Binance’s XRP platform. Their analysis highlights a 30-day correlation between XRP’s price and its Cumulative Volume Delta (CVD) hovering near 0.61. This figure, for the uninitiated, signals a moderate to strong positive relationship between price action and net volume flows. In plain terms, XRP’s recent movements haven’t been arbitrary or disconnected; they are, in fact, relatively well-supported by genuine trading activity rather than mere technical noise or fleeting sentiment.

This positive correlation is not to be underestimated. When price and CVD maintain such a strong, synchronized link, the market's structure is often viewed as internally aligned. This alignment suggests a trend confirmation rather than an isolated, random bounce lacking fundamental support. For XRP, currently fighting tooth and nail to defend that critical $1.90 level, this correlation could prove to be the linchpin, offering a rare glimpse into the true underlying demand and supply dynamics.

📌 XRP’s CVD Confirmation Score: More Base-Building, Less Capitulation (For Now)

💱 Arab Chain further elaborates on the nuances of this CVD metric, stressing that while the 30-day price-CVD correlation remains positive, the latest absolute CVD reading is still relatively negative. This is a critical distinction: accumulated selling pressure, though being absorbed, has not yet definitively flipped into net buying dominance. This isn't a simple 'buy' or 'sell' signal; rather, it acts as a confirmation score, evaluating the inherent support of price action by volume flows. It helps shrewd investors judge the quality of the trend and the coherence of market behavior beneath the surface volatility.

💧 The true genius of this framework lies in its ability to detect early divergence. Should XRP's price manage a recovery while this crucial correlation deteriorates, or if CVD stubbornly remains negative during an upside move, it would signal hidden weakness. This would imply that rallies are merely being sold into, indicating a likely "siphon trap" for late buyers. Such an imbalance frequently precedes sharp reversals, especially in today's uncertain market, characterized by thin liquidity and momentum-driven positioning that often leaves retail investors holding the bag.

In the present context, however, the market appears to be sending a more balanced, albeit cautious, message. The persistence of a positive correlation despite the ongoing price weakness strongly suggests that XRP may be entering a crucial base-building phase. This implies that existing selling pressure is being absorbed gradually, a stark contrast to an aggressive, capitulatory distribution that often obliterates weaker hands.

XRP maintains strategic support at the $1.90 level while larger market players consolidate their positions
XRP maintains strategic support at the $1.90 level while larger market players consolidate their positions

📌 Trend Weakness Keeps Bulls On Defense: A Harsh Reality Check

Looking at the 3-day chart, XRP is trading near $1.91, having decisively failed to reclaim the $2.00 level. This leaves the market in a precarious, short-term defensive posture. The price structure reveals that XRP topped above $3.50 during the mid-2025 rally—a fleeting moment of euphoria—but that momentum has since unraveled. The asset is now entrenched in a steady downtrend, characterized by a series of lower highs and repeated breakdowns, a classic sign of an eroding market structure.

Following a sharp leg lower in October, the price attempted to stabilize, but the recovery was anaemic, lacking any meaningful follow-through. It has since faded into a tighter compression zone, a breeding ground for uncertainty. From a cynical trend perspective, XRP remains firmly capped below its major moving averages. The blue average, a short-to-medium-term indicator, is sloping downward and sits comfortably above the current price near the mid-$2 range, reinforcing a bearish bias and effectively capping any significant upside attempts.

The green average, representing a slightly longer timeframe, is also flattening and visibly rolling over, unequivocally confirming that momentum has weakened across multiple timeframes. Meanwhile, XRP is now leaning directly on the red long-term average, which is itself rising toward the current price. This average is acting as a critical support reference, currently holding the line around the $1.85–$1.90 region. This is the last bastion for bulls.

While the price action over the last several candles might suggest a nascent base-building process, it is fundamentally premature to declare a reversal. Bulls are on critical defense; they desperately need to protect this support zone and, crucially, reclaim the $2.00–$2.10 range to shift momentum back into their favor. Should XRP lose the rising long-term average, the downside risk dramatically increases toward $1.70 and potentially even the mid-$1.50 area, where historical demand has previously stepped in. This is not mere speculation; it is the harsh reality of market structure.

📌 ⚖️ Stakeholder Analysis & Historical Parallel

The current technical tightrope walk for XRP, exacerbated by the consistent regulatory overhang, is not an isolated phenomenon in crypto's turbulent history. In my view, this appears to be a calculated institutional maneuver, leveraging existing FUD to consolidate positions or shake out weak hands, reminiscent of previous skirmishes between innovation and traditional finance. Retail investors, as always, are caught in the crossfire.

⚖️ The most striking historical parallel within the last decade can be drawn to the SEC vs. Kik Interactive (Kin Token) lawsuit in 2019-2020. That battle, centered on the unregistered sale of the Kin token, was a grim precursor to the broader regulatory crackdown we've witnessed. The outcome for Kik was a costly $5 million settlement and, more importantly, a suffocating regulatory cloud that led to significant market impact. Despite its technical merits, Kin faced delistings from some exchanges and sustained price suppression. The project was forced to pivot drastically, and investor confidence was deeply, perhaps irreparably, shaken.

The Binance trading data suggests that recent price fluctuations in XRP are not mere noise
The Binance trading data suggests that recent price fluctuations in XRP are not mere noise

⚖️ The lesson learned from Kik is brutal but clear: regulatory uncertainty, actively enforced through litigation, acts as a profound siphon, draining liquidity and stifling organic growth, regardless of a project’s technological promise or community support. It demonstrated the SEC's willingness to cripple projects through prolonged legal battles rather than engaging in constructive regulatory frameworks that foster innovation. XRP, despite Ripple's partial legal victory, continues to operate under this lingering shadow. While XRP benefits from a far larger ecosystem and a more established position, the principle of regulatory ambiguity consistently suppressing upside remains frighteningly similar. The difference today is the sheer scale and the global implications, making XRP a much larger game of high-stakes poker where institutional players hold most of the chips.

📊 Market Impact Analysis

💰 XRP's current struggle at $1.90, backed by this nuanced CVD data, sends ripples far beyond its own market cap. For one, it amplifies the inherent volatility that defines the broader crypto market. Short-term, we're likely to see increased price swings as liquidations cascade from both sides of the trade. Investor sentiment, already fragile from broader economic uncertainties, becomes even more skittish. This makes traders risk-averse, opting for lower leverage or moving into more stable assets, if "stable" can even be applied to this asset class.

⚖️ Long-term, XRP's inability to decisively break free from its regulatory shackles and regain higher price levels could have significant sector transformations. It reinforces the narrative that older, "utility" tokens—especially those with a centralized corporate backing—remain highly susceptible to legal challenges from traditional financial powerhouses. This creates a psychological barrier for new institutional capital looking to enter the altcoin space, pushing them towards newer, potentially more decentralized, or clearly defined regulatory assets. While stablecoins continue their regulatory dance, and DeFi innovations push boundaries, XRP's protracted battle serves as a stark reminder of the regulatory risks that can perpetually cap even historically significant crypto assets.

🔮 Future Outlook

💱 Looking ahead, XRP's trajectory will likely remain a microcosm of the broader regulatory landscape. We can anticipate continued consolidation and potential further downside until a more definitive regulatory framework, particularly in the US, provides unequivocal clarity for tokens like XRP. This ambiguity acts as an anchor, preventing a true price discovery reflective of its technological capabilities or market adoption.

⚖️ For investors, this presents both risks and opportunities. The immediate risk is obvious: further price degradation should the $1.90 support fail. However, the opportunity lies in the long game. If global regulatory bodies eventually coalesce around a clear classification for XRP-like assets, or if Ripple's On-Demand Liquidity (ODL) network gains significant traction globally outside the immediate reach of the SEC, the suppressed valuation could present a substantial long-term entry point. The regulatory environment will undoubtedly evolve, with jurisdictions vying for crypto leadership. This race could create new arbitrage opportunities for assets able to navigate diverse legal landscapes. However, without a clean slate, XRP will continue to trade with a "litigation discount" that primarily benefits institutional players comfortable with long-term, high-stakes legal gambits.

Stakeholder Position/Key Detail
XRP Price Action 🔥 ⚡ Attempting to stabilize above $1.90 after breaking $2.00; critical support defense.
Binance Data (Arab Chain) 📊 30-day Price-CVD correlation near 0.61, indicating volume-supported moves.
CVD Reading Overall negative, showing accumulated selling pressure, but supported by positive correlation.
📈 Bulls / $1.90 Support 🔑 📉 Defending key long-term average; failure risks drops to $1.70 then $1.50.
📉 Bears / $2.00 Resistance Maintaining control with lower highs; major moving averages capping upside.

📌 🔑 Key Takeaways

  • XRP is at a critical juncture, battling to hold $1.90 after a breakdown from $2.00, signaling heightened market uncertainty.
  • Despite recent weakness, the 30-day Price-CVD correlation near 0.61 on Binance suggests underlying volume support, indicating a base-building phase rather than capitulation.
  • The long-term moving average around $1.85-$1.90 is the last significant support; a break could trigger further declines towards $1.70 and $1.50.
  • Lingering regulatory overhang remains the primary exogenous risk, continuing to dampen XRP’s full price discovery, echoing historical instances of enforcement-by-litigation.
🔮 Thoughts & Predictions

The parallels with the SEC's pursuit of Kik Interactive years ago are impossible to ignore, showcasing a persistent pattern of regulatory bodies wielding legal uncertainty to stifle projects. While XRP enjoys a larger ecosystem and more robust legal defense, the impact on investor sentiment and liquidity remains strikingly similar. This ongoing regulatory shadow is the primary "institutional siphon" for XRP, allowing larger players to accumulate at suppressed valuations while retail investors grapple with magnified risk. The current technical battle for $1.90, supported by positive CVD correlation, suggests smart money might be absorbing this dip, anticipating a long-term resolution or a broader market wave to lift all boats.

Institutional liquidity continues to stabilize XRP as the market prepares for its next directional shift
Institutional liquidity continues to stabilize XRP as the market prepares for its next directional shift

From my perspective, this isn't just about XRP; it's a litmus test for how established altcoins navigate fragmented global regulations. Short-term, expect continued volatility and range-bound trading between roughly $1.70 and $2.10. Medium-term, a definitive breakthrough in global regulatory clarity for such assets, perhaps driven by forward-thinking jurisdictions, could unlock significant upside, but this remains a high-conviction, long-term bet. The lack of this clarity is precisely what institutions exploit to keep prices "manageable" for their entry points.

Ultimately, XRP’s true value realization hinges less on its immediate CVD readings and more on the protracted, political game of regulatory reform. The current situation suggests that while immediate capitulation might be avoided, the path to sustained parabolic growth for XRP remains deliberately obstructed by those who benefit from its regulatory purgatory.

🎯 Investor Action Tips
  • Monitor $1.90 and $1.85: Set alert levels for these critical support zones. A decisive break below could signal further downside to $1.70 or $1.50, necessitating risk mitigation.
  • Watch CVD & Volume: Don't just track price. Look for a sustained flip to positive Cumulative Volume Delta on Binance to confirm genuine buying pressure before considering significant long positions.
  • Diversify Beyond Regulatory Risk: While XRP might offer long-term upside post-clarity, ensure your portfolio isn't overly exposed to assets with similar, unresolved regulatory challenges.
  • Stay Informed on Global Regulations: Track legislative developments in major economic blocs beyond the U.S., as global clarity (or lack thereof) will increasingly dictate XRP's market sentiment and potential adoption.
📘 Glossary for Serious Investors

⚖️ Cumulative Volume Delta (CVD): A technical indicator that measures the difference between buying and selling volume over a period, reflecting the net pressure from buyers versus sellers. A positive CVD indicates more buying volume, while a negative CVD suggests more selling volume.

⚖️ Leverage Clearing: The process where over-leveraged trading positions (those taken with borrowed funds) are forcibly closed by exchanges, typically during periods of high volatility, leading to cascade liquidations and amplified price movements.

🧭 Context of the Day
XRP's battle at $1.90, despite underlying volume support, underscores how lingering regulatory ambiguity continues to suppress an asset's true market potential.
📈 RIPPLE Market Trend Last 7 Days
Date Price (USD) 7D Change
1/18/2026 $2.06 +0.00%
1/19/2026 $2.00 -3.22%
1/20/2026 $1.99 -3.55%
1/21/2026 $1.89 -8.45%
1/22/2026 $1.94 -5.72%
1/23/2026 $1.92 -6.85%
1/24/2026 $1.91 -7.13%

Data provided by CoinGecko Integration.

💬 Investment Wisdom
"Volume is the only market truth; price is merely the argument investors have over it."
Marcus Aurelius (Stylized)

Crypto Market Pulse

January 24, 2026, 07:41 UTC

Total Market Cap
$3.11 T ▲ 0.02% (24h)
Bitcoin Dominance (BTC)
57.52%
Ethereum Dominance (ETH)
11.47%
Total 24h Volume
$109.35 B

Data from CoinGecko

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