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Bitcoin trades in a zone where analysts see both the risk of a deeper correction and the chance of a rebound. After several weeks of selling across the crypto market, pressure has eased, yet strategists still warn about fragile support and uneven demand.
Bloomberg Intelligence strategist Mike McGlone argues that Bitcoin’s earlier drivers have weakened. Spot Bitcoin ETF inflows, halving momentum, and political support helped push BTC higher earlier in the year, but now provide less fuel. He says the market shows features of a late bull cycle, with optimism still visible while trend strength fades.
McGlone highlights $84,000 as a decisive level that Bitcoin must defend to keep its broader bullish structure intact. A sustained break below that support could open the way to a deeper correction, with a possible move toward $70,000, an area that acted as a key pivot in 2020–2021.
He notes that the Bloomberg Galaxy Crypto Index has dropped more than 20% from recent highs, while a still-subdued VIX suggests that equity markets have not fully priced in crypto-related risk.
Corporate holder Strategy has moved to reassure investors about its Bitcoin exposure. In a recent update, the firm said its BTC holdings would still cover its outstanding convertible debt nearly six times if the Bitcoin price dropped back to its average cost basis of $74,000. It added that coverage would remain about double, even at $25,000, underscoring management’s view that the balance sheet can absorb further volatility.
Strategy controls one of the largest corporate Bitcoin treasuries. Founder Michael Saylor continues to promote a long-term accumulation plan and points to growing Bitcoin-backed credit markets as evidence of deeper institutional use.
At the same time, large asset managers cut their holdings in Strategy during the third quarter, as spot Bitcoin ETFs now offer a more direct channel for BTC exposure. Global crypto exchange-traded products have also seen high outflows in November, even as the cost of downside protection in the options market has fallen, pointing to reduced demand for immediate hedges.
Also Read: Bitcoin News Today: BTC Extends Correction Amid Heavy ETF Outflows and Uncertain Market Sentiment
On-chain and positioning data offer a more constructive counterbalance for the BTC price. Bitfinex analysts note that Bitcoin’s long-to-short ratio on major exchanges recently climbed above 3.8, which signals that many traders still expect a rebound. They also point to a modest rise in the number of large “whale” wallets holding more than 100 BTC, hinting at renewed accumulation after the recent drawdown.
Research firms also track valuation gauges that have moved into what some describe as a “discount” zone. The Puell Multiple, which compares miner revenue with its yearly average, now sits at depressed levels, while the MVRV Z-Score shows that Bitcoin’s market value stands closer to realised value than earlier in the year.
In previous cycles, similar clusters often formed near major turning points. Against that backdrop, Bitcoin stands at a crossroads, with bears focused on the $84,000 support band and bulls highlighting potential bottom for the next major move.
