Bitcoin Price Deep Dive: The Calm After the Storm
What a week for Bitcoin. It just experienced its biggest correction for this cycle—a 28% pullback—sending emotions into overdrive. The $90,000 support level broke, triggering a flood of top calls as fear took hold. The selling has stopped now, and it feels like the storm is over.
We’re in that quiet phase where the market starts to absorb the damage. The rapid decline seems to have run its course, leaving behind a mix of disbelief and hesitation. That’s expected—several days of aggressive selling just shook the market.
The bounce so far has been muted—a 9% recovery after briefly dipping below the $80,000 mark.
A quick V-shaped recovery would be reassuring. A positive first sign is that Friday’s candle closed as a bullish pin bar on high volume, staying above the 200-day moving average (green line). This could signal a significant low.
If this was indeed the bottom, it rhymes exceptionally well with patterns from previous cycles.
Key Levels to Watch
The next hurdle is clearing resistance around $87,000, where shorts start feeling the pressure.
Many traders who piled in on the downside are still sitting in profitable positions. As price climbs, they will be forced to buy back, fueling further upside momentum. Once above $90,000, we break the declining trend and reclaim the 10-day moving average—an essential step in reversing the structure.
If we can push through that level, the market can begin looking toward the broader trend again, rather than being stuck in defensive mode.
What we don’t want to see is Bitcoin breaking below the $78,000 low. If that happens, a drop to $74,000 remains possible. Personally, I prefer scaling back into Bitcoin already — even with the risk of it going a bit lower — rather than not buying and missing this long-term opportunity.
Altcoins Struggle to Find a Bottom
Altcoins took a severe hit during this crash, with many retracing their entire recent gains. Historically, altcoins have followed Bitcoin’s lead, and if Bitcoin can stabilize, they should start finding their footing.
My focus has been on the altcoins that have shown the most strength during this panic selling. Let’s take XRP as an example: it didn’t break down and is trading well above its 200-day moving average, performing even stronger than Bitcoin.
I’m also concerned that there isn’t enough liquidity for every altcoin to rise, which makes it difficult for me to buy and hold any altcoin. At this stage, it’s more about observing whether they can keep up with the pace of Bitcoin, rather than lagging behind again.
Looking Ahead
The bigger question now is whether the broader market has already peaked for this cycle. There’s some validity to the argument that we are approaching a topping phase, given how far along we are in the four-year cycle. However, the weight of evidence still suggests there’s more to play for. The next few weeks will be critical.
A move back to $100,000—perhaps overshooting slightly before rolling over—would be the danger scenario. That’s the kind of setup that could suck in the last wave of buyers before reversing hard. If Bitcoin can push into the six-figure range but fails to hold, that would be the real warning sign.
For now, the focus remains on confirming that the recent drop has indeed established a low. Sentiment is still poor, which is expected after such a sell-off. But as momentum shifts, so does perception.
All things considered, this is still shaping up as a normal retracement within a larger trend. While caution is warranted, panic isn’t. Now it’s about seeing if momentum can shift, setting the stage for the next move higher.
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Written by Timothy Assi, a popular investor on eToro.
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