Bitcoin Remains Above $107,000, On-Chain Data Confirms Healthy Trend
Bitcoin's recent 12% drop is normal for the market. On-chain data shows this is a healthy reset. It is not the end of the current bull run. The drop follows past trends.
Bitcoin is powerful and strong. The number 107K is on the rock.
In simple terms:
Bitcoin's 12% fall matches past bull markets. It shows a healthy market reset. Strong support is at $107,000. Oversold signs hint at new upward movement. Resistance at $110,000 is still important. A move above $111,000 is needed to change the trend.
CryptoQuant looked at Bitcoin data. The price fell from $123,000 to $108,000. This drop is like past market corrections. These drops help the market adjust after growing quickly. History shows drops of 20-25% happen even in strong rallies.
CryptoQuant analyst Darkfost said Bitcoin fell almost 28% since March 2024. He said these drops are common in bull markets. They help reduce too much borrowing in trading. This gives long-term investors chances to buy.
Other data suggests Bitcoin is oversold. This could lead to new upward movement. The price has tested $107,000 without falling lower. This shows buyers are active there. Some expect a rebound if Bitcoin passes key resistance levels.
Investor Frank shared on X that short-term holders are oversold. He compared it to three past times. Each time, the market picked up again.
Bitcoin faces resistance at $110,000. This keeps Bitcoin in a tight price range. Analyst Bitcoin Vector said on X that Bitcoin is stuck below this level. He said selling pressure has eased. But Bitcoin needs a strong move to break above it.
Bitcoin Bearish Risk Signal + Oscillator. Source: X.
He thinks a daily close above $111,000 would show a change. This would help the market structure recover. If Bitcoin stays below resistance, it could keep moving sideways. The market waits for a signal to change direction.
The current drop seems part of a healthy cycle. It is removing excess borrowing. It is also making risk levels more stable. Experts agree these drops are common in bull markets. They often reset the market for future moves. This pattern shows Bitcoin's long-term upward trend continues. The short term focuses on stability and sideways movement.