Chances of Bitcoin bear market ‘not large’ though analysts eye $76,000 support

Former Glassnode analyst and founder of CheckOnChain has highlighted that Bitcoin investors selling coins amid the current drawdown could incur losses, transferring holdings to long-term holders. He stated,

“The odd’s we’re in a bear market are not large in my opinion.”

Bitcoin’s price fell to $83,223 after a 6.5% correction over the past 24 hours amid mounting downside pressure in a low-liquidity trading zone around $70,000 to $90,000.

Data from the Cost Basis Distribution heatmap indicates a reduction in realized supply, specifically between $76,000 and $86,000, driven by rapid price increases that outpaced capital inflows. French analyst CryptoSapiens pointed out that closing the gap near $86,000 is healthy for a continued bull run.

“Seeing this famous gap begin to close after weeks of uncertainty is almost a relief.”

Bitcoin’s all-time high of just over $109,000 was reached on the morning of Trump’s inauguration for a second term. This followed a surge that saw the digital asset peak at $98,200 after Trump’s November 2024 election win. These gains have now been reversed as of press time, with Bitcoin struggling to hold $86,000.

A fall to around $76,000 would allow the market to fill this gap while mirroring technical support levels seen last year in Bitcoin’s sustained price channels.

At $73,800, Bitcoin may be supported by long traders using leverage looking to protect derivatives contracts from liquidation alongside traders who view this previous resistance as a likely support level.

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