‘Resilient’ Bitcoin holders defend BTC, but bear floor sits 20% lower: Glassnode

💡 DMK Insight

Bitcoin’s tight demand zone is under pressure, and here’s why that’s crucial for traders right now: The current trading environment suggests that while Bitcoin is holding within a defined range, historical bear market patterns indicate a likely breakdown. If we look at past cycles, similar demand zones have often failed, leading to significant sell-offs. Traders should be cautious, especially if Bitcoin approaches the lower boundary of this zone. A breach could trigger stop-loss orders and accelerate selling, pushing prices to new lows. Keeping an eye on volume trends will be key; a spike in selling volume could confirm this bearish sentiment. On the flip side, if Bitcoin manages to hold above this demand zone, it could set up a short-term rally. But with the broader market sentiment leaning bearish, the risks of a breakdown outweigh the potential for a bounce. Watch for key levels around the current demand zone—if it breaks, it could open the floodgates for further declines, impacting not just Bitcoin but also correlated assets like Ethereum and altcoins that often follow Bitcoin’s lead.