Bitcoin, the first and largest cryptocurrency, is trading lower early Saturday. At the time of writing, Bitcoin was down 2.38% in the last 24 hours to $108,194. This follows yesterday's drop from $112,000 to $106,800 as the broader crypto market fell owing to macroeconomic concerns. 

According to CoinGlass data, $594 million in crypto derivatives were liquidated in the last 24 hours, with crypto bulls losing $507 million while shorts accounted for $87 million.

The pullback arrived just as Bitcoin saw increased ETF inflows and institutional interest, leading some to anticipate an uneventful weekend.

This is reflected in funding rates (which signal traders' sentiments in the perpetual swaps market) suggesting caution, with traders on the sidelines. 

According to Glassnode, despite BTC trading above $108,000 with 100% of its supply in profit, funding rates remain muted at 0.0079%, which is below neutral. Across the top 10 coins, speculative appetite was also surprisingly subdued.

While the very short-term sentiment may indicate caution, on-chain data reveals Bitcoin forming support at lower levels. 

Historic support emerges

According to the on-chain analytics platform Glassnode, more than 420,000 BTC now have a cost basis around the $94,000 level, forming one of the strongest support zones in the current cycle. This massive accumulation zone reflects buying interest at this price level.

Glassnode added that this dense cluster of accumulation has held firm through consolidation in early May, serving as a launchpad for Bitcoin’s breakout to new highs.

Although Bitcoin is currently experiencing profit taking, strong on-chain support at $94,000 provides bulls cause to remain hopeful. As long as BTC remains above this level, the broader rise could continue.

Analysts will now watch key technical levels and macroeconomic indicators to predict Bitcoin's next move. For the time being, $94,000 remains a line in the sand.