๐๐ Top 3 Reasons Why Bitcoin Price Crash Will End Soon
๐ Bitcoin's Recent Drop Explained
Bitcoin ( $BTC ) is trading at $94,650 after a 12% drop from its all-time high of $108,421. Over $1 billion in positions were wiped out, but signs suggest the crash might be nearing its end.
๐ก๏ธ 1. Strong Technical Support
BTC's recent trading volume indicates key support between $90.9K and $100K, with $90.9K acting as a significant demand zone. Historically, such zones absorb selling pressure, signaling a potential bottom. If BTC holds above this level, resistance lies at $100K and $102.7K-$105.3K before targeting new highs.
๐ 2. Holders Unlikely to Sell at Loss
On-chain data from Santiment shows the 30-day Market Value to Realized Value (MVRV) is at -4.17%, suggesting short-term holders are at an average loss. Typically, capitulation happens at -10% to -20%, making a steep drop less likely. BTC is already down 18%, hinting at limited downside risk.
๐ 3. Whales Are Accumulating
Between December 19 and 22, Bitcoin whales accumulated 10,000 BTC, signaling confidence in a price recovery. This aligns with both technical and MVRV data, reinforcing the likelihood of a market rebound.
๐ Whatโs Next for BTC?
The $90K-$90.9K support zone remains critical for BTC's next move. Holding this range could spark a recovery rally or a period of consolidation. Investors should watch these levels closely for signs of momentum shifting upward. ๐๐ฒ