Bitcoin parabola breakdown raises chance for 80% correction: Veteran trader

💡 DMK Insight

The recent break in Bitcoin’s parabola at $86,316 is a critical moment for traders. A predicted 80% drawdown could bring BTC down to around $17,263, which is a significant concern for anyone holding long positions. But here’s the kicker: traditional finance’s increasing interest in crypto could counterbalance this bearish sentiment. If institutional players start accumulating BTC, it could create a floor that prevents a severe downturn. Traders should keep an eye on key support levels around $70,000 and $60,000. If BTC fails to hold these levels, the bearish predictions could gain traction, leading to panic selling. On the flip side, if we see strong buying pressure from institutions, it could signal a potential reversal. Watch for volume spikes and news from major financial institutions that could indicate a shift in sentiment. The next few weeks will be crucial as we gauge whether demand can outweigh the bearish technicals.