Bitcoin Investors Advised to Hold Amid Drawdown
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 odds we’re in a bear market are not large in my opinion.”
Price Correction and Supply Distribution
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.”
Market Trends and Support Levels
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.
