The sharp decline in the cryptocurrency market in recent days has brought Bitcoin’s key support levels back into the spotlight. Axel Adler Jr., an analyst at on-chain data platform CryptoQuant, noted that selling pressure is steadily increasing in his assessment of Bitcoin’s current outlook.
According to the analyst, Bitcoin is currently close to the lows seen in February, around $62,000. Looking at the data for the past seven days, the net loss has reached $7 billion. This number exceeds the losses recorded at the February lows, but is still below the $14 billion peak seen last winter, when the market was billed as a “period of capitulation.”
Adler points out important differences that distinguish the current market cycle from previous corrections. In previous economic downturns, selling pressure tended to weaken as prices approached lows, but this time, on the contrary, selling pressure increased as prices fell. This is seen as an important sign that investor sentiment continues to deteriorate.
Bitcoin prices are below the average cost level for short-term investors of about $76,000, according to analyst data. This development indicates that a large portion of short-term investors have moved into the loss zone.
There are currently two main support levels on the market. The first is approximately $54,000, which is considered a lower bound for the average cost of the entire network. The second support point is the $49,000 area, where the average cost for long-term investors is located.
According to Adler, as long as Bitcoin remains above the $54,000 level, the market is not yet fully in the capitulation phase. However, he notes that selling pressure could accelerate if the price falls below February’s lows, pushing Bitcoin back toward the network cost floor of $54,000. Therefore, analysts have identified the $54,000 level as the last significant line of defense for the bulls.
This is not investment advice.
