Bitcoin Bear Cycle Not Confirmed Unless $94K Is Lost – CryptoQuant CEO Explains
Bitcoin has dropped beneath the $100,000 mark for the primary time since May, igniting renewed nervousness throughout the crypto market. The flagship cryptocurrency is at the moment buying and selling close to $97,000, with merchants and buyers dealing with rising uncertainty amid persistent promoting strain and waning momentum. Fear ranges have surged as many market contributors start to query whether or not this breakdown marks the beginning of a brand new bear market section or just a deeper correction inside the ongoing cycle.
Some analysts warn that the latest lack of key psychological assist may set off additional draw back if patrons fail to defend decrease ranges. Historical patterns present that when BTC breaks beneath main spherical numbers, volatility tends to speed up earlier than discovering a secure base.
However, others stay cautiously optimistic. Ki Young Ju, CEO of CryptoQuant, famous that it’s nonetheless too early to verify a full-scale bear market. He argues that on-chain information — together with trade flows, miner conduct, and long-term holder exercise — doesn’t but replicate the sort of structural weakness sometimes seen throughout cycle tops. Instead, he means that the market could also be getting into a protracted consolidation section, the place volatility cools earlier than Bitcoin prepares for its subsequent directional transfer.
$94K Becomes the Line within the Sand for Bitcoin’s Bull Case
According to Ki Young Ju, CEO of CryptoQuant, the key level that would decide Bitcoin’s subsequent main pattern lies round $94,000. On-chain information exhibits that buyers who entered the market between six to 12 months in the past have a mean price foundation close to this degree, that means it represents a vital psychological and structural assist zone.
Ju explains that whereas Bitcoin’s drop beneath $100,000 has triggered widespread concern, the market hasn’t but confirmed a full-blown bear cycle. He notes that value motion would wish to maintain a breakdown beneath $94,000 earlier than signaling a big shift in sentiment and long-term pattern construction. “Personally, I don’t suppose the bear cycle is confirmed except we lose that degree,” Ju mentioned, emphasizing the significance of endurance amid heightened volatility.
He provides that overreacting to short-term fluctuations usually results in poor decision-making during times of market stress. For now, one of the best plan of action could also be to attend fairly than bounce to conclusions. If $94,000 holds as assist, it may function the muse for a possible restoration. Conversely, a decisive breakdown beneath that threshold would mark a transparent warning signal that the bull section has probably ended.
Bitcoin Drops Below $100K, Testing Long-Term Support Levels
Bitcoin’s weekly chart paints a regarding image because the cryptocurrency trades round $96,900, marking its first sustained transfer beneath the $100,000 degree since May. The breakdown represents a 7.4% decline over the past week, with promoting quantity growing considerably — a transparent signal that market contributors are de-risking amid worry and uncertainty.
The most notable function on the chart is Bitcoin’s check of the 50-week shifting common (blue line), which at the moment sits close to $95,000. Historically, this degree has acted as a key assist zone throughout mid-cycle corrections, serving to to stabilize value earlier than main recoveries. A confirmed weekly shut beneath this shifting common, nevertheless, may shift momentum firmly in favor of the bears, opening the door for a possible retest of the $88,000–$90,000 area close to the 100-week MA (inexperienced line).
Despite the bearish tone, there’s additionally proof of potential accumulation. Volume spikes throughout declines usually point out that bigger gamers are stepping in to soak up promoting strain. If Bitcoin can maintain above $95,000 and reclaim $100,000 within the coming weeks, it may type a strong base for restoration. Conversely, failure to defend this space would reinforce the narrative that the market is getting into a deeper correction section.
Featured picture from ChatGPT, chart from TradingView.com