Bitcoin (BTC) continues to face massive selling pressure, with prices dropping below the $85,000 mark, marking a 12% decline since last Friday. This downturn has fueled panic selling and heightened fear, leading many investors to speculate about the potential start of a bear market. As uncertainty grips the market, traders remain cautious about Bitcoin’s next major move.
However, despite the ongoing sell-off, key on-chain data from CryptoQuant suggests that Bitcoin could be setting up for a recovery rally. The Cumulative Value Days Destroyed (CVDD) indicator, which tracks long-term holder behavior and capital inflows, indicates that BTC could soon enter a new uptrend. If Bitcoin stabilizes and reclaims key support levels, it could pave the way for a rally toward a new all-time high of $128,000.
At a critical inflection point, the next few trading sessions will be crucial in determining whether BTC can regain momentum or if further downside is ahead. Investors are now closely watching whether selling pressure continues or if long-term holders step in to accumulate, signaling a potential market rebound.
Bitcoin Insights Give Hope To Bulls
Currently, Bitcoin is at a critical juncture, facing a serious risk of continued correction as bearish sentiment grips the market. Analysts are increasingly of the view that the Bitcoin bull cycle may be over, as BTC struggles below $85,000 while barely holding above $80,000. With selling pressure intensifying, investors are bracing for another leg down, potentially pushing BTC into lower demand zones.
Despite this negative outlook, some analysts contend that a recovery is still possible if Bitcoin can reclaim key levels. Top analyst Ali Martinez has shared insights suggesting that if BTC reclaims $84,000 as support, it could open the path toward a rally to a new all-time high of $128,000. This implies that while the market remains fragile, Bitcoin still has the potential to regain strength if bulls step in at critical price points.
The coming weeks will be vital in assessing the strength or weakness of this cycle. If BTC continues to struggle below key resistance levels, a deeper correction could follow, reinforcing bearish sentiment. However, if bulls manage to push BTC back above $84,000, it would signify a momentum shift, potentially reigniting the uptrend.
With uncertainty dominating the market, traders are paying close attention to BTC’s next move, as its ability to hold or reclaim support levels will determine whether this cycle is genuinely over or if another rally looms on the horizon.
BTC Struggling Below $85K
Bitcoin has faced severe selling pressure, particularly evident on Sunday, when the price plummeted from $86,000 to $80,000, marking a 7% decline in mere hours. This dramatic dip has fueled panic selling as investors remain uncertain about Bitcoin’s short-term direction.
For bulls to regain control, BTC must reclaim the $86,000 level and push above $90,000 to confirm a potential recovery rally. A strong move past these key resistance levels could restore confidence in the market, signaling that Bitcoin’s correction phase might be nearing its end.
However, failure to break above the $86,000 threshold could keep Bitcoin under bearish control, increasing the risk of another leg down. If BTC drops below $80,000, it could test the $78,000 low, a level that, if breached, may lead to further downside pressure.
As Bitcoin stands at a critical turning point, the next trading sessions will be decisive in determining whether bulls can reclaim pivotal levels or if bears will continue to dominate the market, pushing BTC into deeper correction territory.
Featured image from Dall-E, chart from TradingView
