Does Bitcoin’s 20% Drop Mean a Deeper Plunge is Coming?
The post Does Bitcoin’s 20% Drop Mean a Deeper Plunge is Coming? appeared on BitcoinEthereumNews.com.
Bitcoin has corrected 20% from its all-time high, now testing the critical $98.2k-$100k support zone. On-chain data shows record-high accumulation and a “local bottom” signal as leveraged traders were flushed out. The bullish thesis relies on macro support from the Federal Reserve’s anticipated Quantitative Easing (QE). Bitcoin (BTC) is testing trader sentiment after a five-week correction phase. The flagship cryptocurrency has declined approximately 20% from its recent all-time high, driven primarily by a cascade of long-trader liquidations. Key Midterm Targets for Bitcoin Price BTC Bull Case: A Critical Support Test The Bitcoin price has retested and rebounded a crucial support level in the past few days. After teasing below $100k earlier this week for the first time since June this year, the BTC price is potentially forming a reversal pattern. In the daily and weekly timeframe, the BTC/USD pair has retested a crucial trendline, which acted as a resistance level in 2024 but turned into a support level in 2025. As such, BTC price is well-poised to rebound towards a new all-time high (ATH) in the near term. Source: TradingView Notably, BTC price must regain the 200-day Simple Moving Average (SMA) to confirm a rally beyond $130 in the coming weeks. The bullish thesis for Bitcoin is bolstered by CryptoQuant’s Net Taker Volume, which just hit negative 53 million and a deep negative print indicates aggressive selling that precedes a local bottom. Source: X BTC Bear Case: $98.2K Must Hold However, the slow capital flow to Bitcoin, as observed by the spot BTC exchange-traded funds (ETFs) and the Digital Asset Treasuries (DATs), may weigh down on midterm bullish sentiment. According to Aksel Kibar, a popular market chartist, it is paramount for the BTC/USD pair not to close below the support level around $98.2k. Source: X Furthermore, Kibar noted that his…
