Bitcoin Drops 22% From All-Time High, Holds $82,000-$84,000 Range

Bitcoin has been consolidating in the $82,000-$84,000 range following a 22% correction from its all-time high of $108,786 reached in January 2025. This price action has led to a cautious market sentiment, with hopes for a quick return above $90,000 beginning to fade.

Technical analysis indicates that Bitcoin may be forming a cup-and-handle pattern, which has been developing over multiple years. The rounded bottom phase of this pattern stretched from 2021 to mid-2024, and the handle phase completed in November 2024. This pattern led to an impressive rally that resulted in Bitcoin reaching its new all-time high in January 2025.

The recent 24% correction has brought Bitcoin’s price back to the neckline resistance of the cup-and-handle formation, which is expected to serve as support for the current price action. Elliott wave analysis presents an even more bullish case, suggesting that Bitcoin is currently in a larger fifth impulse wave formation. This typically bullish pattern, despite being interrupted by corrective ABC sub-waves, could target price levels above $130,000, with some projections putting the specific target at around $139,000.

Despite these bullish technical indicators, Bitcoin’s fundamentals show some uncertainty in the short term. There is currently a lack of momentum needed to challenge the $90,000 mark. Steady institutional outflows from Spot Bitcoin ETFs have increased selling pressure, limiting Bitcoin’s ability to regain strength in the immediate term.

Michael Saylor’s Strategy continues its Bitcoin accumulation strategy, recently purchasing another 130 BTC for $10.7 million. This latest acquisition brings Strategy’s total holdings to 499,226 BTC, worth approximately $33.1 billion at current prices. Strategy remains the largest corporate Bitcoin holder in the world, consistently acquiring Bitcoin even during market downturns. Their average purchase price across all holdings stands at $66,360 per BTC, demonstrating their long-term confidence in Bitcoin’s value proposition.

Market analysts view the current downturn differently than typical bear markets, describing it as a temporary “shakeout” rather than the end of Bitcoin’s 4-year cycle. Corrections within bull cycles are normal, and this may be a shakeout rather than the start of a prolonged bear market. The 2024 Bitcoin halving, which occurred on April 20, reduced the network’s block reward to 3.125 BTC per block. Bitcoin’s price is up over 31% since the last halving, considered the “most bullish” setup for Bitcoin price, partly due to growing institutional interest.

On-chain data shows strong holder resilience and continued accumulation. More Bitcoin is being held for longer periods, with short-term holders converting to long-term holders. This trend highlights a hodling behavior, with investors refraining from selling despite the current market correction. Historically, this type of resilience among Bitcoin holders has played a crucial role in forming market bottoms and often ignites new uptrends.

While some analysts predict Bitcoin could reach as high as $600,000, more moderate forecasts suggest BTC will surpass $175,000 by the end of 2025. At the time of writing, Bitcoin is trading at approximately $83,500. The next few weeks will be critical in determining whether the support holds and the predicted rally materializes. Keeping an eye on the $72,000-$73,000 support range will be essential, as broader market factors, including global treasury yields and equity trends, will likely influence Bitcoin’s next major move.