Bitcoin faces renewed volatility after losing the level of $ 110,000 only a few days ago, a breakdown that has fed uncertainty throughout the market. Bulls try to claim this crucial support, but the fear of deeper correction continues to weigh a lot in feeling. With each failed rebound, merchants are questioning whether this setback is simply a pause within the broader upward trend or the beginning of a larger lower trend.
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Crypto Analyst Darkfost has shared new data that provides context for the current environment. From the most recent historical maximum of Bitcoin, about $ 123,000, the asset has become approximately -12%. According to Darkfost, this movement remains well within the limits of normal correction, especially compared to historical setbacks in previous bull cycles.
These corrections are often healthy, serve to restart leverage, overheated feeling and create new entry points for long -term investors. While uncertainty remains in the short term, history suggests that Bitcoin’s current setback does not necessarily indicate the end of the cycle. Instead, it can represent a stabilization period before the next main movement.
Bitcoin’s correction is aligned with historical patterns
According to Darkfost, Bitcoin’s current setback must be seen within the broader context of this cycle instead of as a sign of structural weakness. Looking more closely, from the first historical maximum in March 2024, the highest reduction recorded so far reached 28%. It is important to highlight that Bitcoin has not been corrected more deeply than in the entire upward market.
Historically, the most severe setbacks in the bullish phases have averaged between -20% and -25%, placing the current movement within the expected range. With Bitcoin now approximately 12% of its last historical maximum of $ 123,000, the recoil remains modest compared to the previous cycle corrections. Darkfost emphasizes that this behavior is not unusual and could even extend even more without breaking the underlying bull trend.
In fact, such reductions are often healthy and necessary in long -term upward trends. Several functions serve: eliminate excessive leverage in the derivative market, cool overheat feeling and shake short -term speculators. At the same time, they create new entry opportunities for investors that may have lost the previous stages of the rally.
For long -term holders and institutions, these phases are less about panic and more about preparation. Historically, similar corrections have preceded the renewed force, since Bitcoin stabilizes before resuming his ascending trajectory. If the current pattern is maintained, this setback can strengthen the market base, preparing the scenario for the next stretch of growth.
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Recovery level test after a deep setback
Bitcoin is trying to recover after a strong correction that reduced the price to the $ 108K region. As shown in the table, BTC recently recovered above $ 110K, but continues to fight the impulse. The rejection of the $ 123K zone marked the most recent historical maximum of the cycle, and the market has been in a setback.
The 12 -hour graph highlights how BTC submerged below its 200 -day mobile average (red line) but quickly recovered, indicating that bulls are still defending this crucial support. However, 50 -day mobile averages (blue) and 100 days (green) are tending down, suggesting that the pressure remains in the short term. BTC will need to claim the $ 112K area– $ 115K to change the feeling towards the bullish impulse.
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On the negative side, losing the $ 108K level could open the door to a deeper correction towards $ 105K or even the $ 101K region, where the 200 -day MA is found as the last defense line.
Bitcoin is consolidating in a fragile position. A decisive movement above $ 115K could rekindle the bullish impulse, but the lack of maintenance of the current support can confirm a prolonged correction phase before any attempt of a new historical maximum.
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