Bitcoin is showing remarkable resilience as it remains strong above the $92,000 demand level, reflecting a bullish structure in the face of recent volatility. Yesterday, the leading cryptocurrency rose to $99,400, indicating renewed momentum and increased optimism among investors. This increase reaffirms Bitcoin’s ability to bounce back from local lows and maintain its upward trajectory.
Senior Analyst Axel Adler shared valuable insights into X, highlighting that the current macro correction remains within the acceptable range of historical price pullbacks. According to Adler, the maximum domestic drawdown is at 11.7%, a figure consistent with previous healthy corrections during bull cycles. This indicates that Bitcoin’s price movement continues to follow a predictable pattern, further strengthening the case for its sustainable growth.
As BTC hovers near the critical psychological level of $100,000, market participants are closely monitoring its next moves. A decisive break above this limit could mark the beginning of a new phase of price discovery while maintaining support at $92,000 confirms strong demand and confidence in the asset.
With macroeconomic conditions and on-chain metrics aligning favorably, Bitcoin appears poised for further gains, keeping investors and analysts attentive to evolving price dynamics.
The price is still strong
Bitcoin has shown remarkable resilience despite recently undergoing a 15% correction from its all-time high (ATH) of $108,364 to a local low of $92,100. While the correction has raised some uncertainty in the market, Bitcoin price remains strong and continues to maintain crucial support levels. Analysts and investors are now watching the market closely for signs of where BTC could go next.
CryptoQuant analyst Axel Adler Key Ideas Recently SharedWhich reveals that the current macro correction is within the typical range of price declines observed in previous Bitcoin cycles. According to Adler, the maximum domestic drawdown is 11.7%, which is consistent with healthy correction patterns that typically appear during bull markets.
In contrast, the most significant drawdown during this cycle occurred in August of this year, when the price of Bitcoin fell by 26.4%. This comparison indicates that the current correction is relatively mild and does not indicate any major weakness in the market.
Given the historical context and the fact that Bitcoin’s recent correction is still within an acceptable range, everything appears to be on track for continued bullish momentum. Analysts are optimistic that BTC will soon regain its upward trajectory as strong demand continues.
Investors are waiting for a decisive breakout, especially above key resistance levels, to confirm the next phase of growth. With the market stabilizing, Bitcoin is well positioned for further gains in the long term.
Technical levels: strong demand
Demand for Bitcoin remains strong as it continues to hold above $92,000, a critical level that has supported the price during recent volatility. Recent price action shows that BTC is now above $98,000, a key level that must be reclaimed for bullish momentum to continue.
If the bulls can push above and maintain this level, a quick rally above $100K could follow, putting Bitcoin on the path to price discovery. Market sentiment is likely to turn more positive, leading to a potential upside.
However, the scenario could change quickly if Bitcoin fails to maintain its strength above $95,500. A drop below this level indicates weak demand and may lead to a retest of lower support levels. This could cause BTC to enter a consolidation phase or lead to a further price decline, depending on the market response.
Traders and investors are closely monitoring the $95,500 mark as a crucial support level to gauge the short-term trend. If Bitcoin remains above this level, the bullish outlook will remain intact, but its loss will indicate that the market is losing steam.
Featured image by Dall-E, chart from TradingView