Bitcoin, next support level?…"Holding $98,000 is key"

Bitcoin (BTC) has fallen more than 20% from its all-time high. Attention is focused on how far Bitcoin's decline will continue.

On the 5th (Korean time), cryptocurrency-focused outlet Cointelegraph reported that Bitcoin has fallen 20% from its all-time high of $126,000, and that this has officially started a bear market.

Many experts analyzed that Bitcoin market sentiment has weakened. Swissblock said in a report, "Selling pressure has intensified in recent days, making risk-off signals unstable," and analyzed, "It remains in the low-risk zone for now, but moving to a high-risk stage would indicate a structural shift to bearishness."

On-chain analytics firm Glassnode also said, "Funding for long positions in Bitcoin perpetual futures has decreased 62% from $338,000,000 per month in mid-August to $127,000,000 currently," and diagnosed, "Speculative demand is clearly weakening. This is a macro bearish signal along with reduced long leverage."

Analyst Mikybull Crypto said, "Tether (USDT) dominance has broken upward out of an inverse head-and-shoulders pattern," adding, "In the past, the same pattern preceded the start of a bear market." He explained that a preference for stablecoins (digital assets pegged to fiat currency) is spreading in the market.

Whether Bitcoin falls further will depend on how well the downside support holds. Glassnode explained, "The next major support is about $99,000," and said, "This area has been a rebound point during past corrections."

Analyst Crypto Dan said, "The current price is below the Oct. 10 low ($103,500), and $98,000 is the last major support."