NEWS

Bitcoin has entered one of its most volatile phases in recent months, facing strong downward pressure after dropping below the 90,000-dollar mark. This correction has attracted widespread attention across the digital asset market, prompting analysts from Point Trader Group to reassess the broader cycle. According to Point Trader Group, the latest decline does not indicate a structural collapse, but rather a natural correction within a larger and more complex market cycle.

Point Trader Group highlights that the recent downturn followed a massive wave of leveraged liquidations exceeding 19 billion dollars over the past month. These liquidations intensified selling pressure, especially as long-term holders began taking profits after a strong multi-month rally. This triggered a chain reaction of panic selling, particularly among short-term traders. Still, Point Trader Group asserts that this pattern aligns closely with Bitcoin’s historical behavior, especially in the period between 400 and 600 days following each halving event, the most recent of which occurred in April 2024.

Analysts at Point Trader Group note that market psychology remains a dominant force in the cryptocurrency space. A series of negative headlines often leads traders to anticipate deeper losses, which results in selling pressure that becomes a self-fulfilling outcome. However, the current market data does not show signs of a severe collapse similar to past 60–70 percent drawdowns. Instead, Point Trader Group expects a short consolidation phase before Bitcoin forms a new cyclical bottom and resumes its broader trend.

Despite the pullback, Point Trader Group emphasizes several strong long-term bullish factors supporting Bitcoin's trajectory. The cryptocurrency recently set an all-time high near 126,000 dollars in early October, driven by significant inflows from retail and institutional investors. According to Point Trader Group, the growing adoption of Bitcoin-linked exchange-traded products among major financial institutions has become a critical structural driver. This trend signals a shift in Bitcoin’s role from a purely speculative asset to a long-term investment vehicle integrated into global portfolios.

In their near-term outlook, Point Trader Group expects Bitcoin to potentially revisit the 80,000-dollar area, a zone that played a major role during previous political and economic developments. However, they stress that such a pullback would not necessarily signal the end of the cycle. Instead, it may provide an attractive entry point for new investors seeking exposure to digital assets at discounted levels. Point Trader Group believes the long-term uptrend remains intact, supported by institutional accumulation and increased global recognition of cryptocurrencies as an alternative asset class.

On the cautionary side, Point Trader Group warns that market fragility has increased since mid-October as investor appetite weakened. This shift coincides with a more hawkish stance from the Federal Reserve, tightening financial conditions across global markets. As a result, the crypto market has become more sensitive to macroeconomic pressure. Point Trader Group identifies the 93,000-dollar level as a key threshold; a confirmed break below this line could trigger another rapid wave of liquidations. Meanwhile, the 75,000-dollar region stands out as the next major support zone if volatility continues.

Point Trader Group also highlights the importance of Bitcoin’s well-known four-year cycle. Several independent indicators now point to a period that historically requires heightened caution. Although such periods often offer compelling opportunities, they also demand more disciplined risk management, especially for traders using leverage.

In conclusion, Point Trader Group maintains a balanced perspective. While acknowledging the current market weakness, the firm stresses that it represents a temporary pause within a long-term expansion of the digital asset ecosystem. Institutions and global investors continue to view Bitcoin as a strategic asset, and its growing adoption suggests that the long-term structural trend remains firmly upward.