The Bitcoin (BTC) price is going through a critical cooling phase that is currently testing the patience of investors. According to analyst Aaryamann Shrivastava, the asset requires an immediate recovery above 98,000 dollars to escape the corrective trend.
The digital asset market is currently experiencing a technical slowdown that keeps the patience of institutional and retail investors under intense strain. This situation has consolidated the corrective trend observed in recent weeks following the failed attempts to reach new historical highs. However, the market structure suggests that the cooling is part of a necessary cycle before any real expansion.
By observing on-chain indicators, it is clear that a large part of investors find themselves in net unrealized losses currently. The STH-NUPL index shows that net profitability has remained negative since November of last year in a constant manner. The fact is that the asset has failed to remain above the cost basis of the new market participants, creating a sense of fragility.
For sentiment to change, the market must strongly reclaim the psychological ninety-eight thousand dollar mark very soon. This technical threshold represents the fundamental break-even point to restore general confidence in the digital ecosystem in the short term. As long as the value remains below this level, any temporary rally will be seen as an exit opportunity for frightened holders.
The decisive role of large holders in the face of speculative market cooling
Unlike new users, large investors continue to accumulate assets strategically during these current price drops. Their long-term holding behavior limits volatility during the massive adjustment periods that shake the market. Likewise, the reduction of hot speculative capital indicates that the influence of older wallets is growing significantly during this specific quarter.
On the other hand, technical analysts warn about the formation of a double top pattern that could be dangerous. Some experts argue that geopolitical uncertainty could push the current valuation towards much lower support zones. Thus, defending the ninety thousand dollar level becomes crucial to avoid an uncontrolled collapse of the buy order books.
Will the network be able to sustain main support to avoid massive liquidation?
In the event that buyers fail to defend current levels, the bearish target would move towards critical levels near eighty-six thousand dollars. This Fibonacci retracement zone is vital to avoid a massive outflow of institutional capital from exchange-traded funds. Therefore, selling pressure could intensify if real demand does not appear to absorb the excess supply available in exchanges.
Traders will be closely monitoring the opening of the United States financial markets today to confirm the trend. Volatility is expected to increase drastically as investors attempt to anticipate the next major cycle of positive volatility in the global market. Therefore, patience will be the most valuable tool for those seeking to capitalize on the structural movements of this leading cryptocurrency during this month.
