Bitcoin's Bear Market Fears Eased as $76K Support Holds

Bitcoin's recent price correction has sparked discussions among analysts about the possibility of a bear market. However, many experts believe that the chances of a prolonged downturn are not significant, and they are closely watching the $76,000 support level.

Former Glassnode analyst and CheckOnChain founder highlighted that investors selling Bitcoin during the current drawdown could be transferring holdings to long-term holders, suggesting that the market is not yet in a full-blown bearish trend. He stated, "The odds that we're in a bear market are not large in my opinion."

Bitcoin's price fell to $83,223 after a 6.5% correction over the past 24 hours, amid mounting downside pressure in a low-liquidity trading zone around $70,000 to $90,000. However, analysts are eyeing the $76,000 support level as a crucial point for the market's direction.

Data from the Cost Basis Distribution heatmap indicates a reduction in realized supply, specifically between $76,000 and $86,000. This reduction is driven by rapid price increases that outpaced capital inflows. French analyst CryptoSapiens pointed out that closing the gap near $86,000 is healthy for a continued bull run, stating, "Seeing this famous gap begin to close after weeks of uncertainty is almost a relief."

Bitcoin's all-time high of just over $109,000 was reached on the morning of Trump's inauguration for a second term, following a surge that saw the digital asset peak at $98,200 after Trump's November 2024 election win. These gains have now been reversed, with Bitcoin struggling to hold $86,000.

A fall to around $76,000 would allow the market to fill this gap while mirroring technical support levels seen last year in Bitcoin's sustained price channels. At $73,800, Bitcoin may be supported by long traders using leverage looking to protect derivatives contracts from liquidation, alongside traders who view this previous resistance as a likely support level.