Bitcoin (BTC) is currently trading below key demand levels after losing the $90K mark earlier this week. The price has tagged fresh lows, and bulls have lost control as the market faces intense selling pressure. BTC has dropped 14% in less than three days, entering a panic selling phase as investors react to market uncertainty.
The sudden drop has sparked fear and speculation, with some analysts calling for a bear market while others remain optimistic about BTC’s long-term outlook. Despite this sharp correction, some crypto experts argue that panic selling at this stage is a rookie mistake.
CryptoQuant CEO Ki Young Ju shared key metrics on X displaying BTC’s price drawdown after price discovery, pointing out that these types of corrections are historically normal in bull markets. According to Ju, if you’re panic selling now, you’re probably a noob—implying that this is a typical shakeout designed to flush out weak hands before the next rally.
With Bitcoin’s price struggling below $90K, the next few days will be crucial to determine whether BTC stabilizes and recovers or continues to break lower toward deeper demand levels.
Bitcoin Faces A Correction Phase
Bitcoin has faced its biggest correction of the year, with the price struggling below the $90K level as investor fear and uncertainty dominate the market. The sudden drop has shaken confidence, and speculation about a potential bear market is rising as BTC sets new lows.
Despite the sharp decline, top analysts are still watching for key confirmation levels. The market is at a critical point, where BTC could either consolidate below $90K for an extended period or see a strong push above $95K to confirm a recovery rally. The next few days will be crucial in determining whether Bitcoin stabilizes or faces further downside pressure.
Ki Young Ju’s key insights about the correction explain that a 30% pullback in a Bitcoin bull cycle is common. He reminds investors that in 2021, BTC dropped 53% during its bull market yet still recovered to reach a new all-time high. Ju warns against emotional trading, stating that buying when prices rise and selling when they fall is the worst investment strategy.
Ju emphasizes that investors should have a clear plan rather than reacting impulsively. While the recent price action looks scary, historical trends suggest that this type of correction is normal in a long-term Bitcoin bull run.
BTC Testing Fresh Demand Level
Bitcoin is currently trading at $86,400, hovering just above the 200-day Exponential Moving Average (EMA) and 5% away from the 200-day Moving Average (MA). These key indicators serve as long-term support levels, and holding above them is crucial for bulls to prevent further downside.
If BTC stabilizes at these levels, the next major step in reclaiming bullish momentum would be pushing above the $90K level. However, the market remains highly volatile, and this process could take time before the next major rally takes off. Investors are closely monitoring price action to see if Bitcoin can sustain a recovery phase or if another wave of selling pressure will push it into lower demand zones.
Historically, when Bitcoin tests the 200-day MA, it often leads to a period of consolidation before a significant move. If bulls manage to reclaim the $90K mark and hold it as support, this would signal a potential uptrend resumption. However, failure to hold current levels could result in further declines, with $82K–$84K as the next key demand zone.
For now, traders are waiting to see whether Bitcoin can defend its current levels or if a longer consolidation phase is needed before a breakout occurs.
Featured image from Dall-E, chart from TradingView
