Discover the three key reasons why Bitcoin’s price decline may soon come to an end and the critical levels from which BTC could rebound, potentially initiating the next phase of a bull run.
Bitcoin is currently trading at $94,650 after falling 12% from its all-time high (ATH) of $108,421. Investors are shocked by the speed of the recent crash, which has wiped out positions worth over $1 billion. However, these three reasons suggest that BTC’s price drop might be nearing its end. Let’s explore what lies ahead for the world’s largest cryptocurrency and the broader crypto markets.
Three Reasons Why Bitcoin’s Price Drop May Soon End
With such a steep decline, the critical question is: “When will the drop stop?” Here are three main reasons why Bitcoin’s price may stabilize soon:
Strong Technical Support for Bitcoin:
Analysis shows that a key support level between $90,000 and $90,900 could halt the selling pressure and eliminate bearish momentum.
This zone represents the lower boundary where 68% of trading volume occurred between November 11 and December 11. It’s a strong demand zone that can absorb further declines.
BTC Holders Are Unlikely to Sell at a Loss:
On-chain data reveals that the 30-day MVRV (Market Value to Realized Value) indicator is at -4.17%.
This means that the average investor who bought BTC over the last month is sitting on a 4.17% loss. Historically, the -10% to -20% MVRV range is considered the “opportunity zone,” where short-term holders capitulate, and BTC transitions to long-term holders.
Whales Are Accumulating Bitcoin:
Between December 19 and December 22, whales added 10,000 BTC to their portfolios, signaling confidence in an imminent market recovery. This aligns with both technical indicators and holder behavior, both of which suggest that the ongoing crash could soon end.
Key Support Level: $90,900
Trading data shows that the critical support lies around $90,900. This zone has historically been a strong demand area that could stabilize BTC’s price. If this support holds, Bitcoin may target the next key level at $100,000.
What happens after breaking the $100,000 resistance?
The next resistance zone lies between $102,700 and $105,300. Breaking through these barriers could pave the way for Bitcoin to reach new highs.
Market Expectations: Selling Pressure Eases
The MVRV indicator suggests that another significant drop is unlikely. Bitcoin is already 18% below its ATH, meaning there’s limited room for further sharp declines. At this stage, consolidation or a slight recovery appears more probable.
Whales Support Market Growth
Data shows that Bitcoin whales are actively accumulating BTC during the downturn, signaling confidence in a market rebound. This phenomenon is a critical indicator for the market, as whales often influence price direction.
What’s Next?
Bitcoin’s price drop over the past week may have reached its bottom. The key psychological support level at $90,900 will be crucial in determining the next direction. If BTC holds this level, it could quickly recover or enter a consolidation phase. Investors should closely monitor these levels as they could be the key to initiating a new growth phase.
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