Bitcoin (BTC)’s fall below $99,000 marks a turning point for the market, which faces a scenario that tests the support built during the bull cycle.
Breaking through this important level not only reflects a technical deterioration, but also a more profound change in the dynamics of supply and demand. This is driven by loss of momentum, secular sales and weak demand spot.
As you can see on TradingView’s weekly chart, Bitcoin is currently approaching broad support zones around $88,000 (yellow band) and $72,000 (green band). Scope consistent with previous integration areas and historical technical references.
According to Glassnode data, Bitcoin has failed to sustain itself based on its short-term holder cost ($113,100), which has served as the dividing line between market expansion and correction periods. This helplessness, after half a year of progress, Indicates cooling demand and increased risk The bearish phase is likely to continue.
Glassnode describes the current situation as a moderately bearish phase, with BTC stuck between $97,000 and $111,900 and facing strong resistance at $116,000.there will be a concentration of exits from investors aiming to restore the equilibrium point.
≪Extremely bearish situation≫
The $99,000 breakout occurs in a situation characterized by a series of bearish factors identified by analytical firms. On-chain Cryptoquant. The company noted that following the October 10 mass liquidation event, the market entered a “very bearish” phase and momentum indicators deteriorated.
In addition to this, there was also a contraction in spot demand that began on October 8th. and a slowdown in stablecoin liquidity growth.was one of the engines of the bullish cycle.
Selling pressure is increasing due to long-term holders (LTH) actions. In the past 30 days, these investors have liquidated approximately 815,000 BTC. One of the biggest sale events this year so far.
In previous cycles, strong demand absorbed this amount without damaging the trend, but this time weak institutional and retail demand amplified the correction, CryptoQuant analysts warn.
As evidence, Bitcoin ETFs have recorded net outflows, and activity indicators suggest a contraction in apparent demand.
At the same time, holders continue to take profits, with $3 billion in realized gains recorded on November 7 alone, an even higher number than the profit realization pattern seen during October.
CryptoQuant emphasizes that losses remain virtually non-existent. It suggests that they have not surrendered yet.the elements generally required to establish the final market floor.
Support at $99,000 disappears for El Salvador analyst Jaime Merino weaken short-term technological structuresHowever, the larger trend is not completely negated. The analyst reminded CriptoNoticias that corrections of 20-30% are common in broader bullish cycles. But he cautioned that a sustained recovery in demand will be needed for the market to return to an upward trajectory and once again target the $112,000-$125,000 range.
For now, Bitcoin continues to be subject to technical dynamics and pressure. On-chain This points to support at $88,000 and $72,000 as the next important areas if the downtrend continues. Until we see a satisfactory recovery in demand, The market is still waiting for a catalyst that can reverse the current deterioration.
