Bitcoin’s recent price drop has everyone on edge. While some fear the bull run is over, interesting data suggests a potential turnaround might be near.
The Current Situation: Below $90K and Feeling the Pressure
Bitcoin is currently trading below $90,000. Many investors are worried we’ve seen the peak of this cycle, and the recent price correction has only added to the anxiety. The market’s feeling pretty bearish right now.
Hope from On-Chain Data: A -14% Loss Margin
But here’s a glimmer of hope: On-chain data paints a different picture. Analysis from CryptoQuant shows the Bitcoin on-chain trader realized loss margin is sitting at -14%. Historically, this level has always
been followed by a market recovery. This means a lot of traders are selling at a loss, which often signals the bottom is near before a rebound.
Holding Key Support Levels: The $85K Mark
Bitcoin’s currently holding above $85,000 after a significant drop earlier this week. This is a crucial level. Staying above it, especially above the 200-day moving average and exponential moving average, suggests stabilization and could lead to a push back above $90,000. However, if it falls below $85,000, we could see more selling pressure and a potential retest of recent lows.
The Next Few Days: A Crucial Crossroads
The next few days are critical. If Bitcoin can maintain its position above key support levels and regain some momentum, a strong recovery is possible. However, if the bearish sentiment continues, further price drops are likely. Whether Bitcoin follows its historical trend and bounces back or continues its downward trajectory remains to be seen.
