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The current decline in Bitcoin (BTC) is now considered the deepest correction of this market cycle, based on the observations of a technical analyst.
At the same time, the emotions subside. Analysts disagree on whether the market is entering a long-term decline or whether a bottom will form soon.
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Bitcoin faces deepest correction of the session as fear grips the market
Bitcoin has continued to lose ground in recent months. Yesterday, the coin fell below $90,000, hitting its lowest level in 7 months. However, a slight recovery followed.
Data from BeInCrypto Markets showed it was trading at $91,460 at the time of writing. This represents 0.109% increase during The last 24 hours.
Technical analyst Maartunn highlighted the magnitude of the drop in a recent post on X (formerly known as Twitter). He noted that the depth of the correction is now the largest seen until the current session.
The decline also affected market sentiment. The Fear and Greed Cryptocurrency Index has been trapped in the extreme fear zone for eight consecutive days since November 19.
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This long continuation suggests that traders remain extremely cautious, with risk appetite falling to one of its lowest levels for the year.
“This is now the longest extreme fear bar since the FTX collapse,” Coin Bureau said.
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Analysts are divided on Bitcoin: bear market or local fund?
She stated Alphractal That an intense negative feeling can mean two things. It could indicate a local bottom coming during a bull market. However, in a bear market, such sentiments usually indicate a continued decline. This is precisely where analysts remain divided.
He argues Some that The bear market has begun According to the four-year cycle. Mister Crypto in A detailed series of publications Explain several arguments for the end of the bull market. The most prominent technical signals and cycle timing patterns that are in line with the tops of previous cycles.
Supports signals Sequential and behavioral His point of view. Note that the ancient Bitcoin whale I am sellingThe distribution model of Wyckoff was completed and Bitcoin began to lose ground against the S & P 500, as happened at the beginning of the last bear market.
Investor and trader Philakone predicted that Bitcoin will fall to $35,000 By the end of next year. This contrasts sharply with many bullish predictions for Bitcoin Issued throughout the year.
He said that to publish: “It’s interesting that people think this is impossible. That Bitcoin cannot reach $35K to $40K before December 2026. All bear markets lasted almost exactly 365% days from the peak to 2014, 2018, and 2022. All bear markets fell from 78% to 86%. So how is it not possible?”
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However, other analysts argue the opposite. They say This is not the way Bull markets usually end there They believe that Bitcoin can form a fund instead.
It refers to institutional figures Like Tom Lee and Matt Hougan It also indicates that Bitcoin may be in the process of forming a bottom, perhaps as early as this week.
“We’re not saying we’re going to immediately hit new highs from here, but if history repeats itself, the local bottom should be there, and a recovery may be coming soon,” Hogan said.
Opinions are widely divided, and it is still unclear whether Bitcoin’s decline represents the beginning of a deeper decline or just a short-term bottom. Only time will tell which side is right.
