Bitcoin's price action remains consistent with its four-year 'adoption structure' trend line, according to research cited by CoinTelegraph. The current bear market has produced roughly a 20% discount to that trend line, with one analyst suggesting the asset is 'not broken' and targeting $76K.
The drop, which pushed BTC into a confirmed bearish chart pattern, was driven by a sliding Nasdaq dragging risk assets lower. BeInCrypto reports Bitcoin fell about 5% over the past week, but a lopsided derivatives setup with $1.17 billion in shorts above the current price suggests a potential bear trap. Thin selling volume and cooling US demand recovery will determine if bulls can reclaim momentum.
A separate note from CryptoQuant warns investors about Strategy (formerly MicroStrategy), saying the company's cash cushion has thinned from seven years of coverage to just 14 months. Buying Bitcoin at what they term cycle tops has left the firm holding a $10.6 billion paper loss, leading the research firm to recommend the company halt its BTC purchases to rebuild its cash position.