Bitcoin is once again testing investor confidence
According to CryptoQuant, Bitcoin’s realized price is close to $55,000. The realized price represents the average price at which coins last moved on-chain. In previous bear markets, Bitcoin often dropped 24% to 30% below this level before forming a strong bottom. For now, Bitcoin is still well above $55,000. This means the market has not seen full panic selling yet. On-chain data also shows that more than half of the Bitcoin supply is still in profit. Long-term holders are not selling heavily, which suggests the market has not reached a deep crisis point. Historically, major bottoms do not form in one sudden crash. They usually take several months of sideways movement and repeated testing of support levels. If selling pressure increases, Bitcoin could move toward the $55,000 level, or even the low $50,000 range. On the other hand, if buyers push the price above $70,000 and hold it, confidence could slowly return. For now, Bitcoin remains in a sensitive phase. Fear is high, volatility is building, and price is moving between key support and resistance levels. The next few months will likely decide whether this is the start of a deeper correction or the early stage of recovery. Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more. Sharp liquidations can widen price swings and increase short-term risk, especially for traders using leverage. Long-term holders are usually less affected unless volatility triggers broader panic selling. For new investors, sudden moves can create emotional decision-making and poor entry timing. When options traders price in higher implied volatility, it signals expectations of a significant breakout or breakdown. This often attracts short-term speculators and hedgers, which can amplify momentum once a key level is breached. Increased derivatives positioning can also accelerate moves in either direction. Sustained spot buying, rising trading volume, and improving funding rates would indicate healthier demand. A shift in sentiment from fear toward neutral or greed typically supports steadier upward trends. Stability above major resistance for several weeks would further strengthen confidence. Market makers, short-term traders, and hedged institutional participants often benefit from rapid price swings. Volatility creates more trading opportunities and spreads. However, investors without risk management strategies may face higher losses during sharp reversals.What Happens Next for BTC?
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