The Bitcoin market remains highly volatile, potentially leading to a bear market if critical support levels are breached.
Bitcoin's Volatile Market
The Bitcoin market remains highly volatile, with recent dips under $94K and rebounds to $97,200. This volatility poses a risk of a potential bear market if key investor groups start selling.
Key Levels to Monitor
If Bitcoin loses momentum and drops below $89,300, short-term holders and whale investors might start to take profits, increasing selling pressure. The critical level is $58,000, which is the realized price for miner whales. Historically, a drop below this level has signaled the beginning of bear market cycles.
Can Bulls Avert a Bear Market?
Despite a hawkish macro environment in the U.S., bulls have managed to defend the $90K level for a month, indicating strong demand. However, if Bitcoin breaches $99K without strong spot demand, leveraged long positions may close, triggering a cascade of liquidations. A drop back to $90K would then be a crucial test, as losing this level could push Bitcoin toward $89,300.
While a bear market is not yet confirmed, weak ETF inflows, fading FOMO, and declining network activity could trigger a sharp reversal, potentially wiping out billions in leverage.
