Bitcoin Could Drop 15% More Before Finding a Floor
A long-standing technical indicator suggests Bitcoin's current slide may not be over, with analysts eyeing a deeper correction ahead.
Bitcoin's recent turbulence may not have run its course, according to a closely watched historical indicator that has guided traders through multiple market cycles. The signal in question has a track record of identifying meaningful price bottoms — and right now, it is not flashing a clear reversal, suggesting further downside could lie ahead before buyers regain control.
A decline of 15% or more from current levels would be required to satisfy the conditions this indicator has historically needed to confirm a genuine bottom, according to reporting by CoinDesk. That kind of move would represent a significant reset for an asset that has already experienced considerable pressure, and it would likely test the resolve of both retail participants and institutional holders who entered at higher prices.
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The broader context matters here. Bitcoin's price action rarely moves in isolation — macro headwinds, liquidity conditions, and sentiment across risk assets all feed into the same dynamic. When technical signals align with deteriorating fundamentals, corrections tend to overshoot rather than land softly. That asymmetry is precisely what long-time cycle watchers are factoring in as they assess where durable support might finally emerge.
For investors, the practical implication is straightforward even if it is uncomfortable: capitulation phases, by their nature, feel the worst just before they end. Historically, the moments of maximum fear have coincided with the most attractive entry points — but timing those moments has proven elusive even for seasoned traders. Patience and position sizing, rather than heroic calls, tend to be the tools that preserve capital through such episodes.
Continue reading at CoinDesk
