Critical Levels in Bitcoin Price: May Challenge Below 80 Thousand Dollars

While short-term recovery signals are being observed for Bitcoin (BTC), an important risk factor is becoming evident for investors. Experts emphasize that if the price falls below the 80 thousand dollars level, a much more challenging process could begin.

CryptoQuant analyst, who examines the overall market sentiment, states that short-term investors are showing capitulation and that a broken market psychology is being observed. In this context, price movements bear similarities to past correction periods, and current Bitcoin levels hold critical importance.

According to the CryptoQuant analyst, the SOPR (Spent Output Profit Ratio) model, which evaluates the behaviors of long and short-term investors together, presents two different scenarios. If the current price level represents a correction phase, this may be an indicator of a potential bottom level. However, if this level is considered the beginning of a downward cycle, it could mean that the pullback will take longer.

At this point, it is noted that falling below 80 thousand dollars poses a significant risk. While the possibility of a short-term reaction rally continues, a retraction in price and a drop below 80 thousand dollars could leave investors facing a much more difficult period. Moreover, it should be taken into account that declines exceeding 70% experienced in past bear cycles are less likely this time.

As a result, it is essential for investors evaluating the current state of Bitcoin to closely monitor critical price levels. Understanding which direction the market will take is highly significant regarding whether the 80 thousand dollars level is surpassed or remains below. This situation may play a decisive role in determining Bitcoin investors' trading strategies.