Bitcoin Price Consolidation and Market Risk Analysis
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: 2h ago- Market Supply Loss: Bitcoin's price consolidation near $89,000 has resulted in over 22% of circulating supply held at unrealized losses, a situation reminiscent of early bear market phases in 2018 and 2022, indicating potential deeper correction risks ahead.
- Key Support Level Analysis: Glassnode identifies a critical support level at $83,400, and failure to maintain this level could trigger a deeper price correction towards $80,700, exacerbating market uncertainty.
- Short-Term Holder Status: Only 19.5% of short-term holders are underwater, significantly below the typical 55% neutral threshold that precedes capitulation events, suggesting the market has not yet reached panic selling levels, although insufficient liquidity limits the potential for sustained rallies.
- Cautious Sentiment in Options Market: The options market reflects increased demand for downside protection, with the 25 delta skew turning bearish across all maturities, indicating that market participants are cautious about future price movements, which may further intensify downward pressure.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
