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Bitcoin’s recent plunge below $86,000 sent shockwaves across the crypto market, raising critical questions about whether it will keep going down or just another re-accumulation phase? The sharp decline affected multiple cryptocurrencies, triggering panic among bullish investors. However, Binance’s former CEO, Changpeng Zhao (CZ), stepped in on Twitter to calm the storm.
While CZ reassures investors, uncertainty lingers. Let’s break down the current market scenario and analyze whether it was the top or will we see a higher BTC price?
Bitcoin’s Drop Below $86,000: A Sign of the End of the Bull Market?
Bitcoin’s slip under $90,000 marks the first time it has traded below this level since November 2024. After months of upward momentum, Bitcoin began consolidating between $90,000 and $100,000. While some saw this as a healthy pause, others feared it could indicate the end of the bull market.
Technical analyst Rekt Capital believes Bitcoin is now in a re-accumulation phase. These phases are crucial for market resets during bull cycles, allowing Bitcoin to prepare for another leg upward. The recent dip below $86,000 fits the historical pattern of a “downside deviation” within a re-accumulation range.
But the core question remains: Is this just a reset, or are we witnessing the end of the bull market?
Re-accumulation or True Market Reversal?
Re-accumulation phases typically involve whales and retail investors quietly buying while panic grips the broader market. Data from Glassnode shows that long-term Bitcoin holders added 20,400 BTC to their holdings within 48 hours after the dip, signaling confidence in Bitcoin’s long-term potential.
If Bitcoin can reclaim $90,000 soon, it would confirm that the dip was a mere shakeout and not the end of the bull market. A strong recovery would reignite bullish sentiment and pave the way for a run toward $100,000.
However, a continued decline below $85,000 could signal trouble. The next support level sits at $70,000. A drop to this range could prolong consolidation and test investor confidence, potentially signaling the end of the bull market.
What’s Next for Bitcoin? Scenarios to Watch
Bitcoin’s immediate movements are critical for determining whether the end of the bull market is imminent. Here are two possible outcomes:
- Bullish Rebound: If Bitcoin reclaims $90,000, bullish sentiment will likely return, potentially driving the price above the $100,000 resistance. This outcome would confirm that the bull market is still alive.
- Bearish Continuation: If Bitcoin fails to regain $90,000 and trends lower, a drop to $70,000 could follow. Such a decline might signal a prolonged correction and raise serious concerns about the end of the bull market.
Currently, Bitcoin trades at $85,628, showing a 10.5% decline over the past week.
Is This Really the End of the Bull Market?
Bull markets don’t move in straight lines. Corrections and consolidations are natural. The key question is whether this price action is a healthy correction or a sign of the end of the bull market.
CZ’s reassuring tweet reflects a broader sentiment: Bitcoin has survived worse. Past corrections in bull cycles have been opportunities for long-term holders rather than the end of the bull market.
The coming weeks will be telling. If Bitcoin reclaims $90,000 and surges past $100,000, the bull market remains intact. But if the price drops toward $70,000, it might be time to reassess.
For now, as CZ said: “Zoom out.” The question remains: Will Bitcoin bounce back stronger, or are we witnessing the end of the bull market? Only time will tell.
