Bitcoin faced intense selling pressure after briefly reclaiming the $100,000 mark, but lost it in less than three days. The quick reversal has left investors on edge as BTC is now struggling to stabilize around the $95K level. This critical support area is pivotal in determining whether BTC can recover or face a deeper correction in the coming days.
Senior analyst Axel Adler recently shared valuable insights into X, highlighting a worrying trend in Bitcoin network activity. According to Adler, the average weekly change in the number of active addresses on the Bitcoin network has fallen to very low values since exceeding the $101,000 level. This measure, often a leading indicator of market participation, indicates declining momentum and a potential slowdown in demand.
With uncertainty gripping the market, all eyes are on Bitcoin’s ability to maintain the $95,000 level and attract renewed buying pressure. Analysts warn that failure to find support here could lead to further declines. However, if BTC can regain its strength, the next rise above $100,000 could mark a turning point in this volatile phase. The coming days will be crucial in shaping Bitcoin’s near-term trajectory.
Bitcoin enters a crucial moment
Bitcoin is going through a critical phase after missing the $100,000 mark and falling below the $98,000 level. This unexpected pullback has raised concerns among investors and analysts, who are closely monitoring the $92,000 support level – a pivotal area that could determine whether Bitcoin will regain its upward momentum or extend its correction.
CryptoQuant analyst Axel Adler recently shared insightful data about X, shedding light on the current state of the market. Adler highlighted that the average weekly change in the number of active addresses on the BTC network has fallen to very low values since surpassing the $101k level.
While this may appear bearish at first glance, Adler noted that this trend is consistent with a bullish pattern when adjusted for volatility in the futures market. Historically, similar patterns have been preceded by significant bounces, making the next few days crucial for Bitcoin’s trajectory.
The cryptocurrency community remains cautiously optimistic, with broader market sentiment pointing to the potential for a rally in the coming weeks. However, BTC must first establish a solid foundation above the $92K level to regain investor confidence. A successful bounce could pave the way for another attempt to break the $100,000 psychological level, but failure to hold key support could signal further declines.
Critical demand test
Bitcoin is currently trading at $95,000 after seeing a sharp 7% decline from its recent high of $102,300. This level is crucial for the bulls to maintain their strength and maintain the broader bullish structure that has defined Bitcoin’s price action in recent weeks. Staying above this area is vital to pave the way for a potential recovery and another attempt to reclaim the $100k mark.
However, the market remains on alert as the $92,000 level appears as the last line of defense. Losing this important support could signal a major shift in market sentiment, opening the door for a deeper correction towards the $85,000 level. Such a move would likely amplify downward pressure, further testing investor confidence during this uncertain phase.
Analysts stress that the current consolidation represents a pivotal moment for Bitcoin. If the bulls can hold the price at $95K and regain momentum, the road to recovery could begin. Conversely, failure to hold the $92,000 level would increase the likelihood of prolonged consolidation or even a sharp pullback. The next few days will be crucial, as trading volumes and market sentiment play major roles in determining Bitcoin’s direction.
Featured image by Dall-E, chart from TradingView