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Bitcoin bleeds. After days of relentless selling, the king of crypto clawed back from the $85,000 abyss. Fear grips the market, but could this be it? The sheer panic now ripping through Bitcoin holders hints at a possible bottom. Is this the final shudder before the rebound?
“The price clings to a precarious psychological threshold, balanced on a knife’s edge. But this fragile stability is bought with the blood of panicked holders fleeing the market – a chillingly familiar prelude to the storm’s end.”
Bitcoin Traders And Investors Let Go
Bitcoin’s risk radar is flashing red as macro indicators reveal a sharp turn in market sentiment. Fear grips the options market, with the 25-delta skew plunging into put territory across the board. Traders are clamoring for downside protection, willing to pay a premium to shield themselves from potential losses. While short-term anxiety remains elevated, the real story is the growing unease in long-term bets, suggesting a fundamental shift in Bitcoin’s outlook.
Fear gauge flashing red: Six-month puts are spiking, surging two volatility points in a week. This isn’t just a tremor; it’s a seismic shift. Smart money is betting on a prolonged downturn, bracing for both immediate shocks and the potential for a marketquake. Downside risk is no longer a whisper; it’s a shout.
This pattern typically appears near major cyclical bottom zones as markets overshoot to the downside before equilibrium returns.
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Bitcoin Options 25D Skew. Source: Glassnode
Bitcoin’s bleeding. Realized losses have exploded, mirroring the carnage last seen when FTX imploded. Panic is gripping recent buyers – short-term holders are leading a mass exodus, desperately selling at a loss after chasing the peak. This isn’t a dip; it’s a waterfall. The sheer velocity of these losses screams one thing: the last vestiges of buying power have been wiped out.
Historically, aggressive deleveraging signals the downturn’s final act. As short-term players flee, a pivotal shift occurs: long-term investors emerge, staking their claim and establishing accumulation zones, hinting at the market’s impending revival.
This aligns with classic bottoming behavior, where capitulation precedes recovery.
Bitcoin Realized Loss. Source: Glassnode
BTC Price Can Bounce Back
Bitcoin clings to $85,979, a tightrope walk above the $85,204 safety net. The $85,000 mark looms – not just a number, but a battleground. Capitulation whispers, bearish shadows lengthen, and losses run deep, painting a portrait of a market on its knees. Is this the abyss, or the launchpad? The answer, it seems, is etched in the charts: the bottom is either here, or knocking on the door.
Is Bitcoin poised for a comeback? Eyes are glued to the charts as a potential bottom forms, hinting at a bullish resurgence. Should Bitcoin conquer the $86,822 fortress, prepare for liftoff. Initial targets: $89,800, then $91,521. Demolishing these walls could unleash a wave of bullish euphoria, propelling BTC towards $95,000 in a swift and decisive surge. The stage is set; will Bitcoin seize the moment?
Bitcoin Price Analysis. Source: TradingView
But beware! If the bears sharpen their claws and the economic weather refuses to clear, Bitcoin could plummet through $85,204 like a stone. Should it crack below $82,503, brace for a dizzying drop toward $80,000. This would shatter the bullish dream and postpone the rally, leaving bulls licking their wounds.
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