Bitcoin is at a critical level of $84,640, which could signal either a new all-time high or a deeper correction. The CVDD channel is a key indicator providing reliable market trend signals.
The CVDD Channel’s Significance
The CVDD channel tracks the long-term behavior of investors by measuring the value of coins moved in relation to their age. It is one of the most precise tools for identifying the bottom of cycles. By applying Fibonacci multiples of the CVDD, dynamic support and resistance levels are formed, which Bitcoin has historically respected. Each breakdown or breakout can lead to a move towards the next CVDD band, providing a predictive roadmap based on on-chain investor activity.
Bitcoin’s Current Situation: Historical Precedent
Currently, Bitcoin is testing the CVDD × 2.618 level, which is at $84,640. This level has historically served as significant support in uptrends but is now at risk of breaking. Past data shows similar breakdowns in mid-2022 and late 2024, both leading to sharp corrections to lower CVDD bands. The market's current behavior closely mirrors these past phases where the price failed to hold a level and swiftly dropped to the next.
Potential Scenarios for Bitcoin
If Bitcoin consolidates above the $84,640 mark, it could indicate that the CVDD × 2.618 level is acting as a new base. This would suggest a local bottom is forming, potentially leading to a new rally towards uncharted highs. However, a breakdown below $84K could trigger a deeper correction, with the next support level at $64,700. Continued selling pressure could potentially drop the price to $60K. Despite the short-term bearish outlook, such a move wouldn't be unprecedented, as Bitcoin followed a similar pattern in 2021. The key will be how long it remains below this level.
Bitcoin's future is at a decisive stage — whether it holds above the critical $84,640 level or heads for a new correction depends on the current market activity and investor confidence. Historically, Bitcoin has proven its resilience in recovering from such situations, so watch for further signals from the CVDD channel.
