Bitcoin (BTC) Price Dips Below $90K, Testing Key Demand Levels

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

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 are losing control as the market faces intense selling pressure.

BTC 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.

However, crypto experts say that at this stage, panicking and pulling out is a rookie mistake. According to CryptoQuant CEO Ki Young Ju, this is a typical shakeout designed to flush out weak hands.

BTC Price Drops 30% As Part Of Normal Bull Cycle, Says CryptoQuant CEO

Bitcoin has faced its biggest correction of the year, with the token struggling to stay above the $90K level as investor fear and uncertainty are still high. The sudden drop has seen traders lose confidence, and speculation about a potential bear market is increasing 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.

Instead, Ju emphasizes that investors should have a clear plan and stick to it. While the recent price action looks scary, historical trends suggest that this type of correction is normal in a long-term Bitcoin bull run.

Bitcoin Could See Further Drops

Currently, Bitcoin is trading at $86,400, slightly above the 200-day Exponential Moving Average (EMA) and 5% above 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 manages to stabilize at these levels, the next major step in reclaiming bullish momentum would be pushing above the $90K level, which is now closely watched by traders. However, given the market volatility, 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 can 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 being 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.