Bitcoin Price Analysis: 3 Factors Indicating the End of BTC’s Recent Crash as it Stabilizes at $94,650

bitcoin‘s price is currently trading at approximately $94,800, experiencing a significant drop of roughly 11% from its recent peak of $108,500. This abrupt decline has left many investors reeling, leading to the liquidation of more than $1.5 billion in positions within a matter of days. However, market experts identify three critical factors that suggest this downturn may soon come to a halt. Let us delve into the reasons behind this potential stabilization for the world’s leading cryptocurrency and the broader crypto market.

### Three Indicators Signaling a Potential End to Bitcoin’s Price Decline

As Bitcoin displays such a steep decline, the pressing question remains: when will the downward trend subside? Analysts have highlighted three crucial points that point toward a possible cessation of this crash:

1. Technical analysis indicates a vital support level capable of absorbing selling pressure, leading to a potential retreat for bearish sentiment.
2. Insights from Santiment reveal that short-term Bitcoin holders are currently facing losses and are less likely to sell and thus realize these losses.
3. Large investors, often referred to as “whales,” who previously sold Bitcoin before the decline, have since accumulated around 10,500 btc during the dip.

### Technical Indicators Suggest Strengthening Support for Bitcoin

The consolidation phase observed from November 11 to December 11 reveals that about 68% of Bitcoin’s trading volume was concentrated between the price range of $91,900 and $101,200. Although Bitcoin briefly surged beyond this range to achieve its all-time high at $108,500, subsequent hawkish remarks from the Federal Reserve triggered a sharp decline of approximately 15%. This downturn resulted in a local bottom of around $92,700 on December 20, yet the selloff could persist until Bitcoin identifies a robust support level.

Notably, the price area at approximately $91,900 serves as substantial support, being the lower limit for 68% of trading volume during the consolidation phase. Technical patterns suggest this area may act as a significant demand zone, likely averting further selling pressure and potentially ending Bitcoin’s downward trend.

If this support holds, Bitcoin’s price prediction could see the next hurdle at around $101,200. A successful breach of this resistance could then open the door to resistance levels between $102,700 and $105,500—essential levels that could propel Bitcoin back towards new highs.

### Short-Term Holders Are Hesitant to Sell

The 30-day Market Value to Realized Value (MVRV) metric from Santiment indicates that the average return for investors acquiring BTC over the past month sits at a loss of approximately 4.3%. This data suggests that investors are less likely to sell and cement these losses unless Bitcoin drops further, typically seen when the MVRV declines between -10% and -20%. This scenario often cues a capitulation among short-term holders, transitioning Bitcoin to long-term investors.

Given that Bitcoin has already witnessed a decline exceeding 18%, only a minor retracement seems plausible. This expectation aligns well with the supportive technical outlook identified earlier.

### Whales Capitalize on Current Market Conditions

Adding weight to the optimistic scenario, recent data from Santiment reveals that Bitcoin whales amassed around 10,500 BTC in merely four days between December 19-22. This trend correlates with both the technical insights and the behavior seen among short-term holders, reinforcing the idea that the current bearish spell may soon conclude.

### Future Prospects for Bitcoin

Despite the overall bearish sentiment that has dominated the past week, the outlook for Bitcoin appears to be improving. Critical support zones like $91,900 could play a pivotal role in determining Bitcoin’s trajectory in the near term. Therefore, investors should diligently monitor these levels, as successful stabilization at or above these points could trigger a recovery rally or at least a consolidation phase that alleviates the recent selling pressures.

As the cryptocurrency market remains volatile, closely observing the dynamics surrounding Bitcoin’s support levels, the behavior of whales, and the positions of short-term holders will be essential for predicting the next moves in this ever-evolving financial landscape.