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Bitcoin faced its first major correction since early November, falling 13% from its all-time high of $108,364. This sudden pullback sent shockwaves through the cryptocurrency market, shifting sentiment from extreme bullishness to uncertainty and even fear. The sell-off has been particularly brutal for altcoins, many of which are bleeding heavily as Bitcoin struggles to regain momentum.
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Key metrics from CryptoQuant highlight the severity of the situation, with realized losses totaling $28.9 million – 3.2 times higher than the weekly average. This rise in realized losses indicates that some investors are exiting their positions as the market resets after weeks of strong upward movement.
The big question now is whether this is just a healthy correction in an uptrend or the beginning of a larger downtrend. Traders closely monitor Bitcoin’s ability to maintain critical support levels and the behavior of altcoins, which often amplify Bitcoin’s price movements.
For now, the market remains at a crossroads, and the coming days will likely reveal whether Bitcoin is able to recover and resume its uptrend – or if this correction signals a longer period of weakness.
Bitcoin is facing selling pressure
Bitcoin is under significant selling pressure after two days of violent bearish activity, marking a pivotal moment for the market. The sudden shift in sentiment has caused many analysts and investors to turn cautious, with some turning bearish as Bitcoin’s recent trend begins to lose momentum. This correction has left the market wondering whether the current price action is a natural stop or a precursor to deeper losses.
Senior analysts Axel Adler recently shared insights into Xsupported by compelling on-chain data, highlighting that realized losses rose to $28.9 million. This figure is 3.2 times higher than the weekly average, indicating increased selling activity. Adler’s analysis confirms that although the sell-off may seem alarming, it is consistent with a healthy correction in the market, especially after Bitcoin’s notable rise to $108,300.
Adler points out that the current decline should not spark panic, but rather serve as a moment of patience for long-term holders. He stressed that now is a good time to HODL unless additional bearish signals emerge indicating a long-term downtrend. Such corrections often fuel the market for the next move higher, as weaker hands exit and stronger hands strategically position themselves.
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Price action remains critical, with investors watching closely to determine whether this correction will cement a strong foundation for future growth or signal further downside.
Bullish structure for BTC Holding (for now)
Bitcoin is trading at $94,400 after three straight days of intense selling pressure. Despite the clear bearish sentiment sweeping the market, BTC has managed to maintain its position above the key support level of $92,000. This support is crucial because it clearly defines the ongoing uptrend. Staying above this level indicates resilience and paves the way for a potential strong bounce if buyers regain control in the coming sessions.
While recent price action reflects uncertainty, the decline has not been as steep as market sentiment suggests. Negative sentiment has led many traders to adopt a cautious stance, but BTC’s ability to stay above $92,000 shows fundamental strength in the market structure.
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However, sentiment remains a critical market driver. A restoration of confidence will be necessary for Bitcoin to regain higher levels and resume its upward momentum. If sentiment does not improve and prices continue to decline, the risk of a deeper correction becomes more likely. Losing the $92,000 support could pave the way for a retest of the lower levels, which could cause additional volatility.
Featured image by Dall-E, chart from TradingView