ZebPay’s report notes that if the current downtrend continues, Bitcoin could theoretically lose up to 50% of its value from its recent highs. However, on-chain metrics from Glassnode paint a less dramatic picture: BTC’s short-term drop to $98,000, the first below $100,000 in four months, could prove to be a local bottom.
The data shows that there has been no significant sell-off from long-term holders, while some miners are using the decline to redistribute their holdings. This suggests that major participants still believe in the network’s long-term potential.
The report’s authors emphasize the importance of monitoring volume levels and derivatives behavior. An increase in open interest amid falling prices could signal overheating of shorts and create conditions for a sharp short squeeze.