Bitcoin (BTC) Has Dropped Over 29% From Its January All-Time High of $109,000

The recent downturn has been driven by macroeconomic instability, global trade war fears, and tightening financial conditions

Bitcoin (BTC) price has dropped by over 29% from its January all-time high (ATH) of $109,000, signaling a broader market correction that has affected both the crypto sphere and U.S. stocks.

With fear and uncertainty gripping investors, many are now speculating whether this signals the beginning of a bear market or if it’s simply a normal correction before another leg up.

The recent downturn has been driven by macroeconomic instability, global trade war fears, and tightening financial conditions, all of which have contributed to weakened investor confidence.

As BTC fails to regain key levels, selling pressure has increased, keeping the market in a risk-off sentiment. However, some investors remain hopeful, believing that this correction is temporary and that Bitcoin will rebound once market conditions stabilize.

CryptoQuant CEO Ki Young Ju recently shared insights on X, highlighting the Bitcoin Apparent Demand indicator, which suggests that demand remains weak at the moment.

According to Ju, low demand periods have usually been followed by either extended consolidation or further downside, making the next few weeks crucial for BTC’s short-term trajectory.

Bitcoin struggles to find stability as global markets continue to be plagued by fear and speculation.

With global trade war fears escalating and macroeconomic conditions remaining volatile, both the crypto and U.S. stock markets have suffered deep corrections, leaving traders bracing for further downside risks.

Currently, Bitcoin is trading at its lowest levels since November 10, 2024, as bears remain in control and bulls struggle to build a strong foundation for recovery. Since late January, BTC has been locked in a downtrend, with lower targets continuously set by investors who believe that the bull cycle may have ended.

However, while Bitcoin’s price action remains weak, not all analysts are convinced that this is the start of a prolonged bear market.

Ju’s insights on X reveal that Bitcoin demand appears stagnant at the moment. According to Ju’s analysis, the Bitcoin Apparent Demand indicator suggests that interest in BTC has yet to pick up, but it’s still too early to call this a bear market.

Historically, Bitcoin has experienced similar phases of weak demand before recovering strongly, making the next few weeks critical for BTC’s direction.

For now, Bitcoin must reclaim key levels to restore market confidence. If demand remains weak, BTC could see further declines, but if buyers step in, the market could begin setting up for a potential recovery.

Bitcoin is currently trading at $83,100, following several days of selling pressure that has kept it below the $85K mark. The market remains under bearish control, and bulls have yet to show strong momentum for a recovery.

For BTC to regain its bullish structure, it must reclaim the $90K–$91K range, as this level aligns with the 4-hour 200-moving average (MA) and exponential moving average (EMA). A break and hold above this zone would signal renewed buying strength, potentially setting the stage for a strong rebound.

However, if BTC fails to reclaim the 200-day MA and EMA in the coming days, selling pressure could intensify, leading to a massive drop below $80K. A break below this key psychological level could trigger further liquidations, pushing BTC toward lower demand zones and extending its downtrend.

With market sentiment still fragile, the next few trading sessions will be crucial in determining whether Bitcoin can recover or if another wave of sell-offs will drive it lower. Bulls must act quickly, or BTC may face further downside risks in the short term.