Bitcoin traders 'excess loss-realization' may push BTC price below $44K

💡 DMK Insight

Bitcoin’s recent price drop to $64,063 is raising alarms, echoing past patterns that led to significant declines. Historically, BTC has faced sharp corrections following similar on-chain loss signals, with drops of 25% in 2022 and 50% in 2018. This suggests that current market sentiment could be precarious, especially if we see further selling pressure. Traders should be wary of key support levels around $60,000; a breach could trigger a cascade of stop-loss orders and exacerbate the downward momentum. On the flip side, if BTC can hold above this level, it might attract buyers looking for a bargain, creating a potential bounce. Keep an eye on the daily trading volume and on-chain metrics for additional clues. If we see a spike in selling volume, it could confirm bearish sentiment. Conversely, a recovery above $65,000 might signal a short-term bullish reversal, but until then, caution is warranted.