During the last price correction, Bitcoin broke through the support level of $92,940. According to analysts, giving up this position heightened uncertainty in the market and reduced the likelihood of a quick price recovery.
Bitcoin is currently trading below the aggregate entry price for most holders, which historically has been accompanied by increased selling pressure and a reduced risk appetite among investors," explained Glassnode specialists.
In such conditions, market participants who bought cryptocurrency at a higher price are more likely to lock in losses or exit positions, which further limits growth potential.
At the same time, investors willing to hold the asset can use the correction to gradually build positions, which in the long term could stabilize the market and support subsequent growth of Bitcoin, analysts at Glassnode hope.
Earlier, economist and crypto skeptic Peter Schiff called on Bitcoin investors to reconsider the feasibility of investing in the first cryptocurrency against the backdrop of rapidly rising gold and silver prices.
