Bitcoin Price Faces $100k Breakdown as On-Chain Data Hint More Pain Ahead
The post Bitcoin Price Faces $100k Breakdown as On-Chain Data Hint More Pain Ahead appeared on BitcoinEthereumNews.com.
The Bitcoin price correction is 5% short of testing a major support, expanding the channel pattern. Derivatives data show a cooling speculative environment among traders. The BTC fear and greed index, down to 42%, indicates that the market sentiment is turning bearish. The pioneer cryptocurrency, Bitcoin, was painted red on Monday, recording an intraday loss of 3.39% and currently trading at $106,740. ETF outflows, leveraged long liquidations, and technical breakdowns are among the key contributors to the recent downswing. As bearish momentum mounts, the Bitcoin price is heading for another breakdown, as several on-chain indicators suggest the correction could persist in the near future. BTC Drops Below $106K as On-Chain Data Signals Ongoing Correction Phase Today’s decline saw Bitcoin drop nearly 5% to a low of $105,300 before recovering to $106,740. The bearish momentum spread across the crypto market triggered a total liquidation of $1.23 billion across 325,029 traders in the last 24 hours, according to Coinglass data. As BTC is declining toward the $100K mark, Glassnode senior researcher CryptoVizArt tweeted a list of on-chain indicators, pointing out that the correction phase has more room to continue. The chart below shows long-term holders have already locked in profits of nearly 3.67 million BTC since this cycle’s peak—a staggeringly large realization in comparison to the previous market tops, implying that a pretty large chunk of veteran investors started offloading early in the rally. An analysis of unrealized losses throughout the network demonstrates that even with the recent dip to around $107,000, the hold of coins at a loss as a percentage of Bitcoin’s market cap is very low at 1.3%. Historically, readings below 5% are concomitant with bullish phases, and deeper contractions can see the ratio rise above 50%. The relatively contained loss level suggests that wider market capitulation has not…
