CryptoQuant: BTC Faces Test Below $80K, 70% Crash Unlikely
CryptoQuant analyst Crypto Dan warns of increased pressure on Bitcoin if BTC dips below $80,000. Short-term holders have begun panic selling and market sentiment has shifted from bullish to bearish. This mirrors previous bull-market corrections but on a smaller scale. Two scenarios emerge: the pullback could be a normal correction near the bottom, or a deeper bear cycle prolonging losses. In the near term, Bitcoin has room to rebound. However, breaching the $80K support level would present bigger challenges for BTC. Despite this, CryptoQuant sees a low probability of a 70% crash as seen in past cycles. Traders should watch BTC price action around key support and monitor on-chain metrics and sentiment indicators to guide future market trends.
Neutral
The report highlights a shift from bullish to bearish sentiment as short-term holders panic sell. This mirrors past bull-market corrections, suggesting downside risk if key support at $80,000 fails. However, CryptoQuant’s low probability of a 70% crash limits extreme downside expectations. In similar historical corrections, Bitcoin often rebounds near major support before resuming its trend. Short-term trading could see volatility around the $80K level, offering rebound opportunities. In the long term, if Bitcoin holds above this support and on-chain indicators stabilize, the market could recover. Thus, the immediate outlook is cautious but balanced, warranting a neutral stance rather than outright bearish or bullish.