Market Overview
Bitcoin (BTC) is experiencing significant selling pressure, with prices dropping below $85,000, marking a concerning 12% decline since last Friday. This downturn has triggered widespread panic selling and heightened market fear, leading many to question whether we’re witnessing the start of a broader bearish trend. Recent whale movements have added to market uncertainty, as large holders appear divided on Bitcoin’s next major move.
Bullish On-Chain Signals
Despite the current market turbulence, key on-chain metrics from CryptoQuant paint a potentially bullish picture. The Cumulative Value Days Destroyed (CVDD) indicator, which tracks long-term holder behavior and capital inflows, suggests Bitcoin could be preparing for a significant recovery rally. If BTC successfully stabilizes and reclaims critical support levels, technical analysis indicates a potential surge toward $128,000, setting a new all-time high.
SPONSORED
Trade Bitcoin with up to 100x leverage and maximize your profit potential
Critical Price Levels
For bulls to regain control, Bitcoin must first reclaim the crucial $84,000 support level. Prominent analyst Ali Martinez suggests this could open the path toward the projected $128,000 target. However, failure to hold above $80,000 could trigger a deeper correction, potentially testing lower support zones at $78,000.
Market Implications
The next few trading sessions will be decisive for Bitcoin’s short-term trajectory. A successful break above $86,000 could restore market confidence and validate the bullish thesis. Conversely, continued weakness below this level might extend the current correction phase, potentially leading to a more significant market downturn.